---
title: "SK Hynix Stock (SKHY) Keeps Dropping Despite $38B Factory Move to Boost Chip Capacity"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/295218325.md"
description: "SK Hynix shares declined in pre-market trading despite announcing a $38 billion investment to expand two factories and double production capacity. The company aims to meet growing AI-era memory demand by building new DRAM and NAND facilities in South Korea, targeting operations by 2028-2029. While the move addresses global chip shortages and secures long-term customer deals, investors remain concerned about the sustainability of profit margins."
datetime: "2026-08-07T10:13:49.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/295218325.md)
  - [en](https://longbridge.com/en/news/295218325.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/295218325.md)
generator: "portal-rs"
---

# SK Hynix Stock (SKHY) Keeps Dropping Despite $38B Factory Move to Boost Chip Capacity

Shares in South Korean chipmaker SK Hynix (SKHY) edged lower in pre-market trading today despite setting out $38 billion plans to expand two factories and double its production capacity.

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## **Growing Demand For Memory**

The world's second-largest memory chip maker said it will build a new DRAM manufacturing facility in Yongin, South Korea and a NAND fabrication plant in Cheongiu. The move it said comes in response to "the continuously growing demand for memory in the AI era" and will help ease a global shortage of chips.

"This investment is a decision aimed at ensuring we do not miss opportunities as the market grows," an SK Hynux spokesperson added. "By proactively securing production capacity, we will establish ourselves as a key AI infrastructure partner that contributes to the stability of the global AI semiconductor supply chain."

SK Hynix said that the new Yongin Y2 will be the second of four fabs planned at the Yongin semiconductor cluster. It intends to begin construction in July next year, targeting June 2029 for opening the first cleanroom en route to producing high-bandwidth memory and other next-generation DRAM. The Cheongju M17 expansion will begin in February and its first cleanroom is targeted for the end of 2028.

## **Meeting Investor Concerns**

DRAM (Dynamic Random-Access Memory) chips are fast working memory that helps servers and computers process active data quickly. NAND chips are flash memory used in solid-state drives (SSDs) for long-term data storage.

Overall appetite for SK's chips is expected to continue with industry estimates that DRAM manufacturers are only meeting between 75% to 80% of global demand. SK Hynix also continues to innovate bringing HBM4 samples to leading AI chip designers in the second half of this, with reportedly mass production of both HBM4 and HBM4E slated for 2027. 

However, some investors have been concerned that even though the company's production capacity is sold out through 2027 and it is sealing a number of long-term deals with customers that profit margins are sustainable.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**