SK Hynix is investing about $38.5 billion in two new semiconductor factories as demand for memory chips continues to rise. However, the new facilities will not begin production until 2028 and 2029, meaning they are unlikely to ease the current chip shortage anytime soon.
The South Korean chipmaker announced plans for a new DRAM fabrication plant with an investment of KRW 35.2 trillion, or approximately $25 billion. The facility is expected to open in June 2029.
SK Hynix will also invest KRW 19.1 trillion, or around $13.5 billion, in a new NAND factory. That facility is scheduled to open in December 2028.
The company is one of the world’s three major DRAM and NAND manufacturers. Its latest investments come as demand for memory chips continues to grow, particularly amid expanding AI infrastructure.
Memory Demand Expected to Keep Growing
SK Hynix cited research from Omdia, which estimates that demand for both DRAM and NAND will maintain a compound annual growth rate of 19% from last year through 2030.
That continued growth is a key reason behind the company’s decision to expand its production capacity.
SK Hynix said the ability to provide the required volume of chips at the exact time customers need them has become an important competitive advantage. The company therefore decided to approve the new investments in anticipation of continued market growth.
However, the long construction timelines mean the new factories will not provide an immediate solution to the current supply pressure.
SK Hynix Targets AI Semiconductor Demand
SK Hynix said the investments are intended to help it secure production capacity in line with the expected growth of the semiconductor market.
“This investment is a decision made to seize opportunities in line with the market’s growth speed,” an SK Hynix official said.
The official added that the company aims to proactively secure production capabilities and establish itself as a key partner in AI infrastructure while contributing to the stability of the global AI semiconductor supply chain.
The ongoing memory shortage has also raised concerns about the availability of components for consumer electronics. Recent reports have suggested that DRAM shortages could potentially affect the availability of Apple’s upcoming iPhone 18 Pro at launch.
With SK Hynix’s new DRAM facility not expected to open until June 2029 and its NAND plant scheduled for December 2028, the company’s latest expansion is aimed at addressing longer-term demand rather than the immediate supply crunch.
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