SK Hynix had created a state of the art fabrication plant in Icheon, Korea, but will slow down investment.
The reason it gave was an uncertain business outlook but analysts have reported that there will be oversupply of DRAM memory chips well into next year.
Samsung is also believed to have put the brakes on memory production – the oversupply combines with the strong US dollar to mean that demand remains weak.
Samsung is ahead of the DRAM largest three manufacturers which include SK Hynix and US memory company Micron.
Samsung is currently working on a so-called three dimensional memory chip and it’s believed the other two leading manufacturers are some way off from competing with it.