On July 22, according to foreign media reports, South Korean chip maker SK Hynix announced that it will indefinitely postpone the expansion plan of investing $3.3 billion to build a new memory chip factory.

It is reported that the factory that SK Hynix decided to postpone the expansion is the M17 memory chip factory that the company previously decided to build in the Cheongju Park. The factory was originally planned to start construction in late 2023 and is expected to be completed as early as 2025.

However, the company decided to suspend plans to expand the plant as uncertainty in the global economy is dampening consumers' purchasing power for electronics.

According to foreign media reports, the board of directors of SK Hynix has agreed to temporarily shelve expansion plans. Foreign media reported that the chipmaker's decision to delay the expansion plan may be due to rising costs and slowing demand for chips.

In fact, a few days ago, it was reported that SK Hynix had decided to delay the expansion plan of the Cheongju plant. Foreign media said that with the economic outlook so uncertain, the company decided to take a more cautious approach to large-scale investments, so the company’s board of directors decided to suspend expansion plans at a meeting on June 29.

Last week, sources revealed that SK hynix is considering cutting its capital expenditure in 2023 by about 25% to 16 trillion won due to lower-than-expected demand for end products.