As the global memory market faces a prolonged shortage, SK Hynix is embarking on a strategy to diversify its production bases internationally.
In an interview in the U.S. on July 10, Kwak No-jeong, CEO of SK Hynix, warned that "the semiconductor manufacturing capacity is unable to keep pace with the surging global demand," and predicted that the industry could face an unprecedented memory supply shortage next year. He noted that this trend is likely to persist beyond 2030.
To address the long-term demand advantage in the market, SK Hynix is considering building new fabs in Asia and North America. Kwak stated that various regions, including the U.S., Japan, and Southeast Asia, could be strong candidates for investment if they offer suitable location conditions, stable power and water infrastructure, skilled labor, and competitive pricing.
Currently, SK Hynix is carefully evaluating the business value and benefits of each region.
In South Korea, SK Hynix is focusing on developing large-scale semiconductor clusters in Icheon and Cheongju, while also accelerating its overseas investments. The company is constructing advanced packaging lines for high-bandwidth memory (HBM) in Indiana and is investing heavily in partnerships in the local artificial intelligence (AI) solutions sector.
The funding for these aggressive investments has been secured through a successful listing of American Depositary Receipts (ADRs) on the Nasdaq, which raised approximately $26.5 billion (about 40 trillion won). This capital will be primarily directed toward the introduction of next-generation advanced processes and the enhancement of key production infrastructure both domestically and internationally.
On its first day of trading, SK Hynix's ADR closed at around $168, a 13% increase from the initial offering price of $149, reflecting strong expectations from global investors.
Industry analysts and global financial institutions, including Nvidia CEO Jensen Huang and UBS, have indicated that the memory supply shortage is unlikely to be resolved in the short term, predicting that the demand for DRAM will continue to be strained in the coming years due to the AI boom.
* This article has been translated by AI.
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