$3.86 billion to be invested by SK Hynix in South Korea’s DRAM chip industry

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$3.86 billion to be invested by SK Hynix in South Korea's DRAM chip industry
$3.86 billion to be invested by SK Hynix in South Korea's DRAM chip industry

South Korean memory chip giant SK Hynix revealed new plans to invest 5.3 trillion won ($3.86 billion) in the construction of a chip plant for a new dynamic random access memory (DRAM) chip production base in South Korea.

The memory chip manufacturer SK Hynix (000660.KS), based in South Korea, announced on Wednesday that it is opening fresh plans to invest 5.3 trillion won ($3.86 billion) in building a chip plant for a new dynamic random access memory (DRAM) chip production base in South Korea.

At the end of April, Nvidia (NVDA.O), an open new tab provider, expects to begin building at the M15X chip factory, with the goal of having it ready for mass production by November 2025.

According to a corporate statement, the long-term total investment in the new production base is anticipated to exceed 20 trillion won, including a planned steady rise in equipment investments.

Due to the slump in the chip industry, SK Hynix reduced its yearly expenditure by 50% last year. In October, the company announced that it would be limiting its growth in 2024.

The demand for the chipmaker’s high-bandwidth memory (HBM) chips, which are used in GPUs to train artificial intelligence (AI) systems, is so great that the company’s current capacity is fully booked for this year and a large portion of next year, despite its stance on limiting investment, it added.

The new production base, according to SK Hynix, is intended to boost DRAM capacity with an emphasis on HBMs.

The second-largest memory chip manufacturer in the world predicted that the HBM market would expand by more than 60% annually, with the demand for general DRAM continuously increasing due to the popularity of high-capacity server chip products.

On Thursday, SK Hynix will release its earnings for the January through March quarter.

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