SK Hynix Approved $38 Billion of New Memory Fabs That Won't Produce a Chip Before December 2028 - AOL.com

SK Hynix has approved a $38 billion investment in new memory chip fabrication facilities, but production timelines are significantly delayed, with the first cleanrooms not opening until late 2028 and ... Read original →

SK Hynix’s $38 billion memory chip factory investment underscores a deepening global supply chain imbalance, with production not expected until late 2028, far behind the surge in demand driven by AI compute growth. This delay will constrain HBM, DRAM, and NAND supply, keeping memory prices elevated and squeezing margins for downstream AI chipmakers like NVIDIA. Despite efforts by companies such as TSMC and Samsung to expand capacity, short-term gaps persist, exacerbating market dynamics. Geopolitical friction between Taiwan, China and South Korea may further raise manufacturing costs. In the near term, memory pricing will remain tight, with AI chip production costs rising accordingly, as SK Hynix’s already high valuation suggests limited upside from its delayed expansion.