SK Hynix to make deep capex cut as virus spread threatens chip output

FILE PHOTO: The logo of SK Hynix is seen at its headquarters in Seongnam, South Korea, April 25, 2016. REUTERS/Kim Hong-Ji/File Photo

SEOUL: South Korea's SK Hynix, the world's No.2 memory chip maker, warned a new virus outbreak in China could pose a threat to chip production and said it would sharply reduce annual investment after posting a steep fall in quarterly profit.

The spread of coronavirus, which has killed more than 200 people and infected nearly 10,000 worldwide, threatens to hit the global economy. Manufacturers have suspended production in China and airlines cancelled flights, disrupting supply chains.