SK hynix withholds expansion plan amid economic uncertainty

SK hynix Inc. suspended a factory expansion plan at its Cheongju campus due to global economic uncertainty that is squeezing consumers’ buying power for electronic devices.

The world’s second-largest memory chip maker had been mulling over adding a new chip plant, M17, in Cheongju where it has the M11, M12, and M15 fabrication plants.

Construction was to start early next year, with completion being eyed for as early as 2025.

To be more careful about making a sizable investment at a time when the economic future is so uncertain, the chipmaker's board is reported to have slammed the brakes on the proposal in the meeting on June 29.

In response to a downturn in global consumer tech businesses' expenditure, memory chip manufacturers worldwide have sought to curb supply growth.

For companies already feeling the strain of the economic slump, the rising import prices and skyrocketing value of the U.S. dollar have only made matters worse.