<Anchor>
SK hynix's operating profit in the third quarter plunged by 60% compared to a year ago due to the deterioration of the global semiconductor market.
To this end, we have taken measures such as reducing the amount of investment next year by more than 50% compared to this year.
Reporter Song Wook.
<Reporter>
SK hynix announced provisionally that its operating profit in the third quarter of this year was 1.65 trillion won, down 60.3% from the same period last year.
Sales decreased 7% to KRW 10.9829 trillion, and net profit decreased by 66.7% to KRW 1.12 trillion.
Compared to the second quarter, which recorded the highest sales ever, sales decreased by 20.5% and operating profit decreased by 60.5%.
It is interpreted that this is because shipments of PC and smartphone manufacturers, the major suppliers of semiconductors, have decreased as global prices continue to rise and each country raises interest rates.
SK hynix has diagnosed that the memory semiconductor industry is facing unprecedented market deterioration due to continued uncertainty in the business environment.
In addition, we decided to reduce the size of next year's investment by more than 50% compared to this year's investment, which is expected to be in the late 10 trillion won range, considering that the situation in which supply exceeds demand will continue for the time being.
In the future, he said that he plans to reduce production, focusing on products with relatively low profitability.
Samsung Electronics, in a similar situation, announced in its preliminary earnings report earlier this month that its operating profit in the third quarter was 10.8 trillion won, down 31.7% from a year ago.
Samsung Electronics will release the final results for the third quarter, including performance by division, tomorrow.