SK Hynix indefinitely postpones $3.3B expansion of memory plant in Korea: report
RUNSTUDIO

SK Hynix has indefinitely postponed its $3.3B expansion of a memory chip plant in Korea, due to rising costs and worries over a slump in demand, Nikkei reported.
The news outlet, citing a supplier, noted that SK Hynix, the world's second-largest manufacturer of memory chips, scrapped the expansion at a recent board meeting. The expansion was set to occur at its Cheongju campus in 2023, with production slated to start in 2025. 
Nikkei added that SK Hynix executives expect the slump in demand to last for another year or two.
SK Hynix competes with both Samsung (OTCPK:SSNLF) and Micron Technology (NASDAQ:MU) in the memory chip market.
Micron (MU) recently said it would slow spending as well, as it deals with a slump for memory chips. However, it also announced a new $15B investment in a new Idaho-based fab after the U.S. government passed the CHIPS Act.
On Tuesday, the U.S. Department of Commerce unveiled details for implementation of its $50B program meant to boost domestic semiconductor manufacturing.
Last month, investment firm J.P. Morgan said memory chip makers, including Micron (MU) and SK Hynix, are starting to look attractive, though it cautioned that the sector is likely to see a U-shaped recovery rather than a V-shaped one.
(A previous version of this story identified Cheongju as in China. It is in Korea. Seeking Alpha regrets this error.)