SK Hynix to invest $38 billion building new memory chip plants as demand soars
Memory prices have surged because of short supply and huge demand with investors watching closely for any changes to the supply-demand imbalance.
SK Hynix has announced plans to invest $38.1 billion in building two new memory chip manufacturing plants, as demand for these components continues to surge due to the rise of artificial intelligence. The company will spend 54 trillion Korean won on two facilities, one in Yongin called Y2 and the other in Cheongju called M17. These investments are a response to the growing demand for high-bandwidth memory (HBM) and dynamic random access memory (DRAM), both of which are crucial for AI infrastructure and other high-tech applications.
SK Hynix's decision to invest in these plants comes after careful consideration of market demand and reflects the company's recognition of the importance of supply in the current market imbalance.
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