Memory chip maker SK Hynix Inc. has suspended a wafer fab expansion plan amid uncertainty over demand. TSMC has also taken $4 billion off its capital expenditure budget for 2022.
A global inflationary spiral, initiated by the printing of money by governments during the Covid-19 pandemic, is now squeezing consumer’s ability to buy electronics goods as they struggle to afford food, fuel and other essentials.
As a result, SK Hynix has postponed a decision to build the planned M17 wafer fab at its Cheongju campus according to local reports.
SK Hynix had a plan to start of construction of M17 alongside M11, M12 and M15, early in 2023 with completion early in 2025. “No decision has been made on the matter,” said SK Hynix.
Hynix also has a plan to spend 120 trillion won (about US$90 billion) over several years to build four chip plants at Yongin, 40 kilometers south of Seoul.
Meanwhile TSMC, which had proposed a $44 billion annual capex at the beginning of 2022, has posted a figure of $40 billion at an analysts’ meeting to discuss 2Q22 financial results.
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