SK Hynix Inc. reported a more moderate decline in revenue for the third quarter and said it will increase capital spending, a sign the global semiconductor market may be recovering after more than a year of challenges.

Revenue dropped 17% to 9.07 trillion won, compared with expectations for 8.14 trillion won, according to analyst estimates compiled by Bloomberg. That’s an improvement from a 47% slide in the previous three months and a drop of more than 58% the quarter before that.