Samsung and SK Hynix, backed by the South Korean government, announced a $590 billion investment to expand chip production. The initiative includes 800 trillion won for four new factories in the country's southwest, 81 trillion won for a packaging center, and 30 trillion won over 15 years for next-generation chips. The move is part of President Lee Jae Myung's plan to boost regional economic growth, fueled by rising demand from AI data centers. According to Jefferies Equity Research, memory prices are expected to rise 40 to 50 percent in Q3 2026 and another 30 to 40 percent in Q4. For 2027, analysts predict a further 40 to 45 percent increase, with relief potentially arriving in 2028 when 15 to 20 percent of new capacity comes online. Samsung and SK Hynix together control nearly 80 percent of the global market for high-bandwidth memory chips, essential for AI workloads. Rising memory prices are already increasing costs across consumer electronics, with Apple raising prices on Macs and MacBooks. The investment aims to address supply shortages and stabilize prices amid surging AI demand. The Ministry of Trade, Industry and Energy provided the source for this report.
Samsung and SK Hynix, the two largest manufacturers of high-bandwidth memory chips, are expanding production to meet rising demand from AI data centers. The investment is part of South Korea's broader economic strategy to capitalize on the AI boom. The Ministry of Trade, Industry and Energy provided the source for this report.
Source: thedecoder
