SEOUL (Reuters) – South Korea’s SK Hynix, a chip provider to Apple Inc and Huawei, stated on Friday its fourth-quarter working revenue slumped 95%, lacking analysts’ estimates, as chip costs had been hit by oversupply and weaker demand.
SK Hynix, the world’s No. 2 reminiscence chip maker after Samsung Electronics, stated its working revenue was 236 billion received ($202.2 million) within the December quarter, under a 433 billion received common forecast drawn from 19 analysts, in accordance with Refinitiv information.
That in contrast with an working revenue of 4.Four trillion received a 12 months earlier.
It additionally swung to a web lack of 118 billion received.
“Whereas SK Hynix sees the latest enchancment in demand flows positively, the corporate will perform extra prudent manufacturing and funding methods, as complexities and uncertainties nonetheless stay a lot larger than up to now,” it stated in a press release.
Reminiscence chip makers have suffered a double-whammy, with the U.S.-China commerce conflict hitting demand from purchasers resembling smartphone makers and information facilities, exacerbating oversupply after capability will increase throughout a growth in 2017.
Samsung Electronics reported its smallest annual revenue in 4 years on Thursday and gave a guarded outlook on chip demand development, amid fears over the financial affect of the brand new coronavirus outbreak in China.
($1 = 1,167.2000 received)
Reporting by Hyunjoo Jin; Modifying by Muralikumar Anantharaman and Stephen Coates