SK Hynix to Invest $38 Billion in New Memory Chip Plants to Meet Surging AI Demand

SK Hynix, the world's second-largest memory chip maker, announced a massive 54 trillion won ($38 billion) investment to construct two new memory chip plants in South Korea. This expansion, including a DRAM facility in Yongin and a NAND plant in Cheongju, aims to double production capacity and alleviate the global memory chip shortage driven by the escalating demand for AI-era data centers and high-bandwidth memory. Analysts, however, suggest that this new capacity will not impact the market until 2029 or later, indicating that memory prices are unlikely to soften before late 2028.