Shulou(Shulou.com)11/24 Report--

CTOnews.com October 6 news, according to Taiwan's Economic Daily quoted South Korean media as saying that SK Hynix will significantly reduce capital expenditure by 70% to 80% next year. SK Hynix is also the largest inventory manufacturer with the largest revision of capital expenditure.

According to TrendForce Jibang Consulting, in the second quarter of this year, SK Hynix NAND chips had a global market share of 19.9%, armour 15.6% and Meguiar 12.6%, with a combined share of 33% for Samsung.

In terms of DRAM, the market share of SK Hynix was 27.3% in the first quarter of this year, while Micron was 23.8%. The combined market share of the two companies is close to Samsung's 43.5%.

South Korean media pointed out that SK Hynix used to decide on equipment investment plans every other year from August to September, but due to the epidemic, equipment delivery and other factors, SK Hynix issued orders ahead of time this year and discussed next year's equipment investment with suppliers in April. With the oversupply of chips, it began to cut orders for equipment merchants at the end of September.

Previously, Meguiar also slowed production and cut capital expenditure because of falling demand, which is expected to reduce capital expenditure by about $8 billion (56.72 billion yuan), or at least 30%, in fiscal 2023, and equipment spending by 50% in wafer factories. Armor later announced that it would cut its production capacity of its Yokkaichi and North listed flash memory plants in Japan by nearly 30% from October.

TrendForce Jibang Consulting believes that after the DRAM production reduction plans of the major original factories will be much lower than the historical water level of supply growth, the oversupply ratio of DRAM for the whole year of 2023 will converge from the original estimate of 11.6% to less than 10%, which will help improve the rapidly deteriorating inventory pressure. The industry believes that with the gradual reduction of production or capital expenditure by large companies, it will be able to accelerate the industrial market out of the trough.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.