Chipmakers in ‘Unprecedented’ Slump Rule Out Quick Turnaround
- Texas Instruments and SK Hynix add to warnings about demand
- Memory prices fell by 20% last quarter as clients pulled back
Chip peers such as Samsung, TSMC, Intel. and Nvidia have all sounded the alarm about slumping demand.
Photographer: I-Hwa Cheng/BloombergThis article is for subscribers only.
Texas Instruments Inc. and SK Hynix Inc. offered a gloomy view of the chip market in their latest quarterly reports, dashing hopes of a quick rebound for the $550 billion industry.
Dallas-based TI, whose chips go into everything from home appliances to missiles, said Tuesday that revenue will top out at $4.8 billion this quarter -- at best -- short of the $4.93 billion analysts had projected. Hynix, meanwhile, said memory prices fell 20% over the last quarter and warned of “unprecedented deterioration in market conditions.” The Icheon-based company slashed its capital spending for next year by at least half.