SK Hynix to spend $38.1 billion on new memory fabs amid AI boom

Responding to surging demand from AI data centers, SK Hynix has unveiled its largest-ever investment plan: up to 54 trillion won ($38.1 billion) will go toward building two new fabrication plants in Yongin and Cheongju. The facility dubbed "Y2" in Yongin will serve as a new hub for DRAM production, while the Cheongju plant will expand NAND flash output. Construction on both sites is scheduled to begin in 2027.

The company stressed that in the AI era, technological competitiveness alone is not enough — the decisive advantage lies in the ability to deliver the required volume of products exactly when customers need them. The investment decision was made after a thorough review of market demand.

The insatiable appetite of AI companies for building new data centers is putting significant pressure on DRAM manufacturers. A large portion of production capacity is now being redirected toward high-bandwidth memory (HBM) needed for AI servers.

The flip side of this trend is a shortage of memory chips for smartphones and PCs. Electronics makers are facing a lack of DRAM and NAND on the market, which over the past year has led to noticeably higher device prices and added pressure on consumers.

Memory makers are spending enormous sums to expand capacity to meet demand from both the AI sector and the electronics industry. For instance, Samsung and SK Hynix previously announced a joint investment plan of $570 billion to boost chip production.

However, even a significant increase in output may not cover demand. The chairman of ADATA issued a worrisome forecast: the largest DRAM makers are unlikely to satisfy market needs simply by ramping up production. In other words, the memory and RAM shortage is unlikely to be resolved in the near term.