SK hynix today said it will cut its investment in memory chips amid weak demand and the ongoing supply glut in the industry. "This year's investment will be cut because the company will put its priority on enhancing technology migration rather than expanding its market share," SK hynix President Kim Joon-ho told investors in a conference call after getting the results of first quarter earnings, Tuesday.

SK hynix invested 6.6 trillion won in its chip plants located in Cheongju and Icheon, as well as in Wuxi in China, according to the company.

SK Hynix today also announced financial results for its first quarter ended March 31, 2016.

The company's consolidated first quarter revenue was 3.66 trillion won decreased 17% and operating profit amounted to 562 billion won declined 43% from the previous quarter.

Quarter over quarter, DRAM bit shipments and the average selling price declined by 3% and 14% respectively due to a delay in demand recovery from the PC segment as well as slowdown in server and mobile DRAM market growth. For NAND Flash, the bit shipments and the average selling price decreased 11% and 12% each on account of sluggish demand from mobile devices.

SK Hynix said ot would expand 21nm to be applied to its mobile DRAM and concentrate on developing 1Xnm DRAM. For NAND Flash, SK Hynix is planning to make a transition to 1Ynm process in planar NAND and raise its competitiveness in 3D technology. The company will start to mass produce 48-layer 3D NAND Flash after completing the development within the latter half of this year.