South Korean chipmaker SK Hynix (SKHY) said it plans to spend $38.1 billion U.S. to build two new memory chip manufacturing plants as demand continues to soar worldwide.
Memory chips are a key component in artificial intelligence (A.I.) data centres and there is a global shortage of the processors.
SK Hynix said that its planned investment should help alleviate pressure on itself and the broader microchip and semiconductor industry.
Prices for memory chips have soared this year amid the global shortage, increasing costs for technology giants such as Nvidia (NVDA) and Apple (AAPL).
Apple CEO Tim Cook has likened the memory chip shortage and resulting price increase to a “100-year flood.”
However, the memory chip shortage and price surge has pushed the share price of SK Hynix and other producers such as Micron Technology (MU) sharply higher over the past year.
SK Hynix is planning to build the new fabrication plants in South Korea, with the construction on the first one scheduled to start in July 2027.
The first fabrication plant should be operational in June 2029, according to SK Hynix.
The new investments are part of what SK Hynix has called its “master plan” to invest up to $45 billion U.S. in bolstering its memory chip manufacturing capacity.
SKHY stock has declined 15% since making its New York debut on the Nasdaq (NDAQ) exchange in July of this year.
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