SK Hynix chip expansion: $38 billion bet won’t ease AI memory prices until 2028
SK Hynix Inc. is putting real money behind the AI memory rush, unveiling plans to spend 54 trillion won, or roughly $38 billion, on two new chip factories in South Korea. The SK Hynix chip expansion is one of the largest single investments the company has disclosed as it races to keep pace with soaring demand for memory chips used in artificial intelligence infrastructure.
Key takeaways
- SK Hynix will invest 54 trillion won ($38 billion) to build two new memory chip plants in South Korea.
- A new DRAM facility called “Y2” is planned for Yongin, with a NAND plant called “M17” set for Cheongju.
- The company aims to rapidly double its production capacity to meet AI-driven demand and ease a global memory chip shortage.
- SK Hynix is the world’s second-largest memory maker, but Samsung reclaimed the top spot in DRAM market share in the second quarter of 2026.
- Analysts say the new capacity won’t hit the market until 2029 and beyond, meaning memory prices are unlikely to soften before the end of 2028.
SK Hynix announces $38 billion expansion project
SK Hynix confirmed the 54 trillion won ($38 billion) spending plan in a statement Friday, framing it as a direct response to what the company called “the continuously growing demand for memory in the AI era.” The figure ranks among the biggest capital commitments in the memory chip industry this year, and it lands at a moment when prices for DRAM and NAND have already spiked sharply because supply simply hasn’t kept up with demand.
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