SK Hynix announces 54 trillion won (~$40B) manufacturing plan for AI-focused chip production.

SK Hynix is accelerating its AI infrastructure capabilities through a 54 trillion won ($38 billion) investment to expand memory chip production. The South Korean manufacturer plans to construct two factories dedicated to high-bandwidth memory (HBM) semiconductor manufacturing.

The announcement reflects record earnings for SK Hynix, underscoring sustained demand for AI memory chips. The company reported revenue of 79.3 trillion won and net profit of 60.5 trillion won, driven by increased HBM sales. SK Hynix has begun supplying its new HBM4 memory chips to clients.

HBM has become essential to modern AI hardware architecture. Through advanced packaging technologies, multiple HBM stacks can be deployed alongside processors, enabling improved data throughput and system performance.

Despite manufacturers increasing AI chip output, memory availability remains constrained. According to Omdia, an industry research firm, memory products are expected to generate more than half of total semiconductor manufacturer revenue through 2026, driven by rising demand for DRAM and NAND.

As a major HBM supplier to NVIDIA, SK Hynix plays a critical role in AI infrastructure provision. This investment follows a recent $500 billion partnership between NVIDIA CEO Jensen Huang and SK Group.

SK Hynix will invest 35.2 trillion won in its Y2 DRAM production facility at Yongin and 19.1 trillion won to build the M17 NAND flash facility at Cheongju. These investments form part of the company's broader capacity expansion strategy.

Both facilities will require several years to reach full operation. Construction of the Y2 DRAM plant is scheduled to begin in July 2027, with cleanroom completion targeted for June 2029. The M17 NAND facility construction will start in February 2027, with completion expected in December 2028.

According to Counterpoint Research, SK Hynix captured 58 percent of global HBM revenue in the first quarter of 2026. SK Hynix forecasts continued AI demand growth over the next decade. Aligning with Omdia's projections, the company expects global DRAM and NAND demand to expand at a 19 percent compound annual growth rate through 2030.