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SK Hynix to invest $38 billion in AI memory chip plants
SK Hynix, the world's second-largest memory chipmaker, will invest 54 trillion won ($38 billion) to expand production in South Korea. The company will build a DRAM facility in Yongin and a NAND…
The Story in Brief
SK Hynix, the world's second-largest memory chipmaker, will invest 54 trillion won ($38 billion) to expand production in South Korea. The company will build a DRAM facility in Yongin and a NAND plant in Cheongju, targeting cleanroom openings by 2029 and 2028 respectively. The move aims to double production capacity and ease global shortages of AI memory chips. SK Hynix, a key Nvidia partner, says its production is sold out through 2027. The investment period runs through April 2031, part of a broader national push to dominate AI-era memory manufacturing.
The Indian Opinion
The $38 billion bet by SK Hynix is impressive but the market reaction, shares fell 4.9 per cent, shows investors are not buying the 'AI forever' narrative. While the company says its capacity is sold out through 2027, the real test will be whether it can sustain today's fat margins as competitors like Samsung ramp up. The question ordinary Indians should watch is whether this Korean glut will eventually drive down memory chip prices for Indian electronics makers, or if the AI boom is truly insatiable.
Source: livemint.com
This story was synthesised by AI from the source linked above.
