SK Hynix said Friday it will invest 54 trillion won ($38.1 billion) to build two memory chip plants in South Korea, betting that AI-driven demand for high-bandwidth memory and NAND will outrun supply through the end of the decade.
The numbers and the timeline
The outlay splits 35.2 trillion won for a DRAM fab in Yongin called Y2 and 19.1 trillion won for a NAND facility in Cheongju called M17. Ground breaks on Cheongju in February 2027 with a cleanroom opening in December 2028; Yongin follows in July 2027 with first production in June 2029. Both dates are years out, which means the capital is not buying near-term output but a seat at the table for 2029 and beyond.
Samsung's shadow
The move arrives as Samsung reclaimed the number one spot in DRAM market share in the second quarter, according to Counterpoint Research. SK Hynix’s response is a fresh capex injection to expand its footprint, though Neil Shah of Counterpoint notes it will not alter near-term output. The rivalry is now a race to secure cleanroom space before customers lock in long-term supply agreements.
The supply-demand math
Shah argues that multi-vendor expansions from Samsung, SK Hynix, Micron and CXMT will grow global supply significantly through 2028, yet demand is growing faster than planned capacity. That imbalance suggests memory prices are unlikely to soften before the end of 2028. The market has already priced the thesis: shares of the three largest producers have rallied on the bet that the supply gap persists.
The master plan context
Friday’s announcement is the next tranche of a master plan unveiled last year that envisions 600 trillion won for the Yongin Semiconductor Cluster and 100 trillion won for Cheongju expansion. The company frames the decision as a thorough review of market demand, arguing that in the AI era the ability to deliver volume at the exact moment customers need it is the ultimate competitive advantage.