SK Hynix to Invest Over KRW 20T in HBM Expansion

SK Hynix is set to make a landmark investment in 2024, committing over KRW 20 trillion (approximately USD 13.7 billion) to expand its manufacturing capacity for high-bandwidth memory (HBM). This marks the largest single-year investment in the company's history and underscores its strategic focus on advanced memory technologies.

During its 2024 earnings conference call, SK Hynix reaffirmed its plans to increase capital spending compared to the previous year, with a strong emphasis on accelerating HBM production to meet soaring global demand.

The semiconductor industry is known for its cyclical nature, driven by rapid technological advancements and fluctuations in the global economy. SK Hynix's bold investment move comes at a time when demand for HBM is surging—fueled by accelerated investments in artificial intelligence (AI) infrastructure and next-generation data center technologies.

As a key provider of 8-layer and 12-layer HBM3E solutions to major tech companies like NVIDIA, SK Hynix is strategically positioned to benefit from this growing market. The company aims to solidify its leadership in the DRAM segment through this aggressive expansion initiative.

According to market research firm Counterpoint Research, SK Hynix captured a 36% share of the global DRAM market in Q1 2024, surpassing Samsung Electronics' 34%. The strong momentum in HBM sales has played a pivotal role in this shift.

"In 2024, our investment will exceed last year's level, with a clear focus on HBM," said SK Hynix. This direction aligns with the company's broader strategy to scale up capacity and maintain a competitive edge in response to increasing demand for high-speed memory solutions in AI and big data applications.

Looking back, SK Hynix's investment history reflects key inflection points in the memory market. The company first crossed the KRW 10 trillion mark in 2017, followed by significant investments during the 2018 semiconductor supercycle and the pandemic-fueled boom in 2022. In 2023, capital expenditures approached KRW 18 trillion, and this year's projected spending further demonstrates the company's long-term commitment to cutting-edge memory technologies.