The memory crunch is raising prices for hyperscalers, enterprises and consumers. SK Hynix is benefitting enormously from it, just like the other two major memory manufacturers Micron and Samsung. However, unlike those two rivals, SK Hynix plans to double its memory-chip wafer production capacity over the next five years. Chairman Chey Tae-won made the announcement this week in Taipei, citing a persistent shortage of AI-related memory chips that the company expects could last through 2030. No spending figure was disclosed.
Chey still expects the shortage could last through 2030. He did not specify how much the company intends to spend. The South Korean chipmaker has become a central player in the AI supply chain, counting Nvidia among its top customers. SK Hynix, Samsung Electronics, and Micron Technology together dominate the global memory market. While CXMT, a Chinese supplier, was taken of the U.S.’ list of restricted companies, it may only make a dent in the overall shortage.
Already sold out through 2026
As Techzine reported earlier, SK Hynix had already sold out its entire 2026 memory production, with AI demand from hyperscalers and chip designers driving near-term constraints well before any new capacity comes online. Those constraints have kept upward pressure on HBM pricing even as the company works to scale.
The company has not been standing still, at any rate. SK Hynix announced a $129 billion investment in South Korea last year to expand production of advanced memory, a plan spanning multiple years. In a separate supply chain move, ASML received an $8 billion mega-order from SK Hynix, providing the lithography equipment needed to manufacture next-generation chips at scale.
Valuations cross $1 trillion
Strong AI spending has driven demand for advanced memory products. Both SK Hynix and Micron crossed the $1 trillion market valuation mark for the first time last week. SK Hynix is also the exclusive HBM supplier for Microsoft’s Maia 200 AI chip, as previously reported.
SK Hynix has also committed approximately $15 billion to expand advanced memory production in 2026, focused specifically on HBM and advanced DRAM. The doubling of wafer production capacity would add significant supply to a market that is currently unable to meet demand.