SK Hynix plans to separately invest $64 billion in building AI memory chip plants. The company has been in the news with Samsung to spend around $576 billion in the southwest segment. Looks like it has more different plans on this matter.
Reuters reported that SK Hynix is considering an investment of $64 billion (100 trillion won) to develop new AI memory chip plants. One of these plants will be of NAND flash memory that will contribute to the AI boom in South Korea.
Today, SK Hynix CEO Kwak Noh-jung stated that the company will invest 80 trillion won to establish a new NAND memory chip production factory. The plant will likely be developed by 2029. It will be named M17, and the work will begin next year.
Another option in this aspect is a chip packaging plant, which will take nearly 20 trillion won and will be completed by late 2027 in Cheongju. These new investment plans will help the company to cut down on the pressure created by the memory shortage.
AI memory chips have become a crucial topic of discussion in the market. The sudden shortage and rise in memory chip prices led companies to look for significant alternatives. Prices for both NAND and DRAM have reached new heights in a few days.
SK Hynix CEO has revealed confidence in AI-driven demand for chips. The South Korean company talks about the strong demand for memory chips and said:
“While demand for NAND has been increasing and is expected to continue growing in the future, NAND supply is constrained.”
(Image Credits: SK Hynix)
