SK Hynix (SKHY) Stock Approves $38 Billion South Korea Chip Factory Expansion
TLDR
- SK Hynix approved a $38.15 billion investment to expand chip production at two South Korean sites.
- New facilities planned for Yongin (DRAM) and Cheongju (NAND), targeting 2028 and 2029 openings.
- SKHY stock dropped nearly 5% despite the announcement.
- DRAM makers are currently only meeting 75-80% of global demand.
- TipRanks analysts give SKHY a Strong Buy consensus with a $245.50 price target.
SK Hynix stock (SKHY) fell close to 5% on Friday after the company announced a $38.15 billion plan to expand its semiconductor production capacity in South Korea.
The stock has dropped from around $168 to $143 since listing on the Nasdaq on July 10.
The board approved 54.3 trillion won in total investment. That breaks down to 35.2 trillion won for a new DRAM facility in Yongin, south of Seoul, and 19.1 trillion won for a NAND fabrication plant in Cheongju, in central South Korea.
The company says the decision follows the disclosure of its medium- to long-term plan back in June.
SK Hynix $SKHY plans ~$38.3B of new fab investment in South Korea through 2031:
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