The American Depositary Receipts of SK Hynix will be in focus on Friday, as the company has announced a $38.1 billion (54 trillion Korean won) investment to expand its memory chip manufacturing capacity, as the artificial intelligence boom drives demand for high-bandwidth memory and other advanced chips.
The South Korean chipmaker will invest 35.2 trillion won in a new fabrication plant called Y2 at the Yongin Semiconductor Cluster, and another 19.1 trillion won in the M17 facility in Cheongju.
The investment comes as the memory chip market faces a supply shortage amid rapidly rising demand from companies building AI infrastructure. Data centres and chipmakers such as Nvidia require large quantities of high-bandwidth memory (HBM) to support increasingly advanced AI systems.
The supply-demand imbalance has also pushed memory prices higher, benefiting major memory manufacturers including SK Hynix, Samsung and Micron. Their stocks have rallied as investors expect tight supply conditions to continue.
However, SK Hynix is also facing stronger competition from Samsung. Counterpoint Research data showed Samsung regained the top position in the DRAM market by share in the second quarter, adding pressure on SK Hynix to expand its production footprint.
The development comes at a time when SK Hynix's ADRs, listed in the US, have faced volatility along with other chip stocks. The receipts settled 0.84% lower at $142.32 apiece on Thursday.
SK Hynix Yongin Y2 Fab To Produce HBM
The Yongin Y2 facility will be the second of four fabs planned by SK Hynix within the Yongin Semiconductor Cluster.
The company plans to use the facility as a production base for DRAM, a type of memory that is seeing particularly strong demand. Construction is scheduled to begin in July 2027, with the first cleanroom expected to open in June 2029.
The cleanroom will be used to manufacture HBM and other next-generation DRAM products. Such controlled environments are essential for semiconductor manufacturing.
SK Hynix's investment in Yongin therefore gives the company additional capacity to support the growing demand for advanced memory products used in AI applications.
Also Read: SK Hynix Jumps 28%, Samsung Surges 24% As AI-Fuelled Chip Rally Returns
Cheongju M17 Fab To Focus On NAND
The second facility, M17 in Cheongju, will focus on NAND memory, where SK Hynix said demand is rising rapidly.
Construction is expected to start in February 2027, with the first cleanroom scheduled to open in December 2028.
The different production focus of the two facilities gives SK Hynix an opportunity to expand capacity across key segments of the memory market. While Yongin Y2 will focus on DRAM and next-generation HBM products, M17 will manufacture NAND memory.
SK Hynix said the investment decision followed a detailed assessment of market demand.
“In the AI era, technological competitiveness alone is not enough and the ability to supply the required volume at the exact moment customers need it is the ultimate competitive advantage,” the company said.
SK Hynix Expands Long-Term Manufacturing Plan
The 54 trillion won investment represents the next stage of SK Hynix's broader manufacturing expansion plans.
The company had announced a long-term master plan last year involving 600 trillion won of investment in the Yongin Semiconductor Cluster and another 100 trillion won to expand its Cheongju production base.
The latest commitments add fresh capacity to that broader strategy at a time when the memory industry is being reshaped by the rapid expansion of AI infrastructure.
Also Read: SK Hynix's Profit Jump Misses Markets' Lofty AI Expectation
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