SK Hynix announces $38 billion investment in new DRAM and NAND fabrication plants focused on AI memory capacity and HBM production.
SK Hynix announced plans to invest 54 trillion won ($38 billion) in expanding its chipmaking facilities in South Korea, with the investment split between a new DRAM fabrication facility in Yongin and a NAND manufacturing plant in Cheongju. Approximately two-thirds of the planned spending will be earmarked for the DRAM project, according to Bloomberg. The expansion aims to meet rapidly rising AI-driven memory demand by strengthening production of high-speed DRAM for low-latency computing and NAND flash for high-capacity, fast-access storage.
The new Yongin Y2 facility will be the second of four fabs planned at the Yongin semiconductor cluster. SK Hynix intends to break ground on the project in July 2027. The announcement comes weeks after SK Group and Samsung Electronics, along with the South Korean government, committed to investing $880 billion toward building South Korea's domestic manufacturing and AI capabilities, with the country aiming to double its memory production capacity within five years.
The announcement was met with mixed market reactions. U.S.-listed shares of SK Hynix dropped nearly 0.2% in premarket trading on Friday, while Seoul-traded shares closed down 4.9% the same day. The company said it will detail shareholder return plans in the third quarter and is "actively reviewing additional shareholder return initiatives as part of its ongoing commitment to enhancing shareholder value," according to a statement reported by Bloomberg. On Stocktwits, retail sentiment for SKHY remained 'bearish' on Friday.
SK Hynix's strong operational performance underscores demand for its products. In the second quarter, revenue rose 257% year-over-year and 51% sequentially to 79.32 trillion won ($64.64 billion), while operating profit surged 557% to 60.54 trillion won—exceeding Wall Street analyst expectations of 84 trillion won in revenue and 64 trillion won in operating profit, according to LSEG estimates. The company's first-half revenue topped 100 trillion won for the first time, highlighting strong AI-driven demand. SK Hynix sells memory chips and other hardware used in data centers and consumer electronics, counting U.S. tech giants including Nvidia among its customers. The company completed its Nasdaq listing on July 10, 2026, raising $26.5 billion from U.S. investors.