On August 7, 2026, SK Hynix announced plans to invest 54 trillion Korean won ($38.1 billion) to construct two new memory chip manufacturing facilities in response to increasing demand for memory chips, particularly high-bandwidth memory (HBM) used in AI applications.
The company will allocate 35.2 trillion won for a fabrication plant in Yongin, named 'Y2', and 19.1 trillion won for a facility in Cheongju, referred to as 'M17'. This investment comes amid rising memory prices due to supply shortages and heightened demand from companies like Nvidia, which are expanding their AI infrastructure.
As a result, major memory producers, including SK Hynix, Samsung, and Micron, have seen significant increases in their stock prices as investors anticipate that the supply-demand imbalance will continue. Notably, Samsung has regained its position as the leading player in the dynamic random access memory (DRAM) market, intensifying competition for SK Hynix.
Neil Shah, vice president of research at Counterpoint Research, indicated that while these investments will not immediately affect SK Hynix's output, they are strategically aimed at future capacity needs, with the Yongin facility expected to begin production in June 2029. The Cheongju plant will focus on NAND memory, which is also experiencing rapid demand growth.
SK Hynix emphasized that in the competitive AI landscape, the ability to deliver the required volume of products promptly is crucial. This investment is part of a broader strategy, with SK Hynix planning to invest a total of 600 trillion won in the Yongin Semiconductor Cluster and 100 trillion won to enhance its Cheongju production capabilities