SK Hynix Afraid Deadly CoronaVirus Will Affect Its Operations

World’s number 2 memory chip manufacturer SK Hynix came out on Friday to express its fears concerning the outbreak of deadly coronavirus in China and how it might interfere with its operations.

The South Korean based firm which currently posted lower than expected quarterly results says emergence of coronavirus will affect its production activities further pushing the company to post decreasing annual investment.

In the quarter ended December 31, 2019. Hynix posted an operating profit of $202 million, this was 84% lower than the average $371 million estimated by analysts.

This was the lowest operating profit the company has posted in quarterly results in the last seven years.

Companies with plants in China are now closing down operations in the country citing fear of the fast spreading deadly virus. Countries are issuing travelling advisories to its citizens against China and so are carriers suspending their flights to China.

SK Hynix has a factory in eastern China, the company’s Chief Financial Officer, Cha Jin-seok says outbreak of the deadly virus has not impacted production activities in their China’s plant in anyway. He however says if the situation is not contained soon production activities in the firm will be interfered with.

Hynix is not the only manufacturer worried about the ordeal, battery manufacturer Samsung SDI expects the current situation to affects its earnings in the next quarter. Equally, LG Display which produces flat screens for Apple Inc. (AAPL) says outbreak of the virus poses great uncertainty.