SK hynix has recently shelved a plan to expand its factory in the central Chungcheong city of Cheongju amid growing uncertainties stemming from inflation and the high exchange rate.

According to industry sources on Tuesday, the world-leading chipmaker and semiconductor manufacturer put off a final decision on the planned factory expansion during a meeting of its board of directors late last month.

The company had previously planned to inject four-point-three trillion won to build a new semiconductor factory within the Cheongju Technopolis industrial complex by 2025.

The deferment comes as the global dynamic random access memory(DRAM) industry is forecast to see a continued downward trend in the wake of the prolonged Russia-Ukraine war, economic stagnation in China and high inflation. The price of NAND flash memory has also begun to decline.

Increases in raw material and other import prices fueled by the weakening local currency are also thought to have deterred the company from pushing ahead with the expansion.

Meanwhile, Bloomberg recently reported that SK hynix could also adjust its facilities investment plan for next year, quoting sources that claim the company is reviewing cutting its capital expenditure by around 25 percent to 16 trillion won.