South Korean computer chip manufacturer SK Hynix said on Wednesday that if the United States strengthens its crackdown on exporting semiconductor technology and manufacturing equipment to China, it may be forced to sell its manufacturing business in China.
SK Hynix's Chief Marketing Officer Kevin Noh raised these concerns during a conference call on Wednesday, after the company reported a 60% decrease in operating profit from the previous quarter since 2021, which the company attributed to a deteriorating business environment.
The war between Russia and Ukraine has exacerbated global inflation, as well as central banks raising interest rates in response to soaring prices, which has slowed consumer spending on high-tech products that require computer chips. SK Hynix and other semiconductor manufacturers are also responding to new restrictions from the United States on exporting advanced semiconductors and chip manufacturing equipment to China. These restrictions are partly aimed at preventing the use of advanced US technology in China's military development.