SK Hynix: "Also Checking Customers' Financial Health... Closely Managing Investment Risks"

SK Hynix announced today (28) that "when assessing demand, we also check customers' financial health, fundraising capacity, and the preparedness of major supply chains, reflecting them in our investment plans."

During the corporate presentation on third-quarter earnings held today, SK Hynix addressed questions regarding concerns over overproduction by explaining, "We do not just look at the capital expenditures (CAPEX) or demand forecasts presented by customers."

Regarding the trend of expanding investment, the company stated, "An increase in investment scale or the number of new fabs (factories) does not mean that supply increases in direct proportion to it. Current investments are not simply to increase production capacity, but also to secure the production base necessary for technology transitions and the expansion of high-value-added products."

The company also expressed its stance to flexibly adjust the pace of investment according to market conditions.

SK Hynix stated, "The company's financial soundness is also an important criterion for judgment. Considering our mid-to-long-term net cash target and appropriate cash levels, we will maintain sufficient financial capacity and manage the scale and execution speed of investments based on demand visibility and investment profitability."

Specifically, it added, "Investment execution will be carried out in stages. While preemptively securing additional infrastructure in preparation for mid-to-long-term demand, we will adjust core resources necessary to increase supply, such as equipment bring-in and mass production expansion, in line with demand. For new fabs such as the Yongin cluster and M17, we plan to accelerate the construction of building exteriors while building cleanrooms in phases."

SK Hynix emphasized, "To summarize, we will prepare the mid-to-long-term supply base without a hitch based on demand visibility, but secure actual production capacity in line with demand and profitability. Even if unexpected situations arise, we will manage risks well by flexibly adjusting investment execution, production plans, and resource allocation."
※ Please note: This article was translated by AI and may contain errors.