SEOUL-- SK hynix Inc., South Korea's No. 2 chipmaker, on Tuesday denied a rumor that it is facing damage worth 2 trillion won (US$1.7 billion) over defective DRAMs, saying that it has requested a police probe into such a cyber libel.

The rumor over SK hynix's possible loss has been circulating here from Monday night, claiming that the company is dealing with DRAM defects amounting to 240,000 wafers following its clients' complaints.

In a statement, SK hynix emphasized that the rumor is not true and that it has requested a police investigation over such a false claim.

Shares in SK hynix fell 0.78 percent to 127,500 won on the Seoul bourse, underperforming the broader KOSPI's 0.13 percent decline.

Source: Yonhap News Agency