What to know:
- SK Hynix unveiled a 54 trillion won ($38B) investment to expand AI memory chip production.
- Two new plants will boost HBM, DRAM, and NAND manufacturing for growing AI demand.
- SK Hynix expects global DRAM and NAND demand to grow at a 19% CAGR through 2030.
SK Hynix is ramping up its AI offerings by investing 54 trillion won (equivalent to $38 billion) to increase the production of memory chips. The South Korean firm plans to construct two factories dedicated to the production of semiconductor devices that would increase the output of high-bandwidth memory (HBM).
This announcement follows record earnings from the firm, proving that the demand for artificial intelligence memory chips is still on the rise. The revenue from SK Hynix is currently 79.3 trillion won, and net profit is 60.5 trillion won due to increased sales of HBM memory. The firm has even begun supplying its new HBM4 memory chips to clients.
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AI Memory Demand Continues to Rise
Nowadays, HBM has become a necessary part of AI hardware technology. Multiple HBM stacks can be implemented alongside processors through the use of advanced packaging technologies, providing for improved data processing and performance.
Even though manufacturers are continuously raising the output of AI chips, there are some problems associated with the availability of memory. According to the research of Omdia, an industry research company, memory products are expected to generate over half of the total revenue of semiconductor manufacturers until 2026 due to rising demand for DRAM and NAND.
Being one of the biggest providers of HBM to Nvidia, SK Hynix is of great importance in providing infrastructure for AI systems. This investment comes in the wake of a recent $500 billion partnership agreement between Nvidia’s CEO Jensen Huang and SK Group.
SK Hynix Builds New DRAM and NAND Facilities
35.2 trillion won would be invested by SK Hynix into its Y2 DRAM production facility at Yongin, while 19.1 trillion won will be utilized for building the M17 NAND flash facility at the Cheongju campus.
These are part of the plans by the company that also include other investments into other facilities. So far, SK Hynix has been making investments into the Yongin Semiconductor Cluster and other production facilities at Cheongju. As per reports by Counterpoint Research, the company had earned 58% of HBM revenue globally in the first quarter of 2026.
New Plants Support Long-Term AI Growth
It will take years before both plants are fully functional. Construction of the Y2 DRAM plant is slated to start in July 2027, while the completion of its cleanrooms is expected by June 2029. Construction of the M17 NAND plant will begin in February 2027, and the completion date will be December 2028.
The forecast made by SK Hynix indicates that the demand for AI will keep increasing during the next decade. In accordance with the prediction made by Omdia, SK Hynix expects that the worldwide demand for DRAM and NAND is going to increase with a CAGR of 19% until 2030.
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