Now Reading: SK Hynix to invest $38 billion in AI memory chip expansion
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SK Hynix to invest $38 billion in AI memory chip expansion
The Story in Brief
The Story in Brief
SK Hynix will invest 54 trillion won ($38 billion) to build two new chipmaking facilities in South Korea, aiming to double its production capacity of AI memory chips. The Yongin Y2 fab will manufacture DRAM and high-bandwidth memory (HBM), while the Cheongju M17 plant will produce NAND flash memory. The company expects to break ground on the Yongin project in July 2025 and open its first cleanroom by June 2029. The Cheongju facility will start construction in February 2025, targeting completion by end of 2028. SK Hynix, a key supplier to Nvidia, said the investment responds to
The Indian Opinion
The cheer around AI chip stocks often overlooks the cyclical nature of memory chips. SK Hynix's huge bet, $38 billion on new fabs, comes even as its shares fell 4.9% on the announcement day, signalling market jitters about oversupply and shrinking margins. The real test will be whether high-bandwidth memory demand stays strong enough to absorb this capacity without a price crash.
Sources (2): livemint.com, ndtvprofit.com
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
Ashin Xavier: interesting
IO Repro: Repro test v4 after fix 2 Oct. Safe to trash.
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IO Repro: Repro test after fix 2 Oct. Safe to trash.