SK Hynix to Spend $107 Billion on Four New Memory Chip Factories

[cageymaru]

SK Hynix has announced that it is building four new memory chip plants that will cost $107 billion. Construction of the plants will begin in 2022 at a 4.5 million square meter site that is south of Seoul. SK Hynix is expected to invest $49 billion into 2 existing plants. Next-generation chips and DRAM are expected to be manufactured at the sites. Even though there is a downturn in the memory market now, SK Hynix is preparing for cutting edge technologies such as 5G and self-driving vehicles.

"Though there is not enough chip demand for autonomous cars now, I believe there will be much more demand for self-driving vehicles in the next 10 years or as early as in 2023 or 2024," said analyst Kim Young-gun at Mirae Asset Daewoo. "That will create more chip demand for SK Hynix," as will the commercialization of 5G networks over the next few years, Kim said.

 

[CombatChrisNC]

War is n Korea isn't going to happen. Else there wouldn't be investments like this. That's my take.

Oh, and I guess we'll finally see some lower prices.

 

[blackacidevil]

I guess we'll finally see some lower prices.

Or more likely they'll raise prices because where's 107 billion dollars gonna come from?

 

[coynatha]

Or more likely they'll raise prices because where's 107 billion dollars gonna come from?

They already have it. Haven't you seen prices the last few years?

 

[haste.]

Bold move cotton. I'm never a person to challenge forward thinking in an organization.

 

[Qthulu]

Yes, I've got an order here for a mister ray ban. Did someone order a set of teeth.

 

[KazeoHin]

107 BILLION dollars? So like, 1 quarter year of the profits they've been raking in with the RAM price gouging they've been partaking in...

 

[NKD]

107 BILLION dollars? So like, 1 quarter year of the profits they've been raking in with the RAM price gouging they've been partaking in...

I agree with the ram prices and stuff but they are not even remotely taking anything close to that in quarterly profits.

 

[TheOne&OnlyZeke]

Would love to see lower prices because of this...but we all know that won't happen

 

[Joseph F]

They cleared 3 billion US in Q4 2018. Obviously, they will need to seek lenders for these expansions.

 

[KazeoHin]

I agree with the ram prices and stuff but they are not even remotely taking anything close to that in quarterly profits.

Poes law, sorry.

 

[Calavaro]

107 Billion is an insane investment. One wrong flood and hard drive prices will spike! Oh thats right....

 

[Grimlaking]

They can cover this with financing easy. Plus don't forget how much of this investment is already baked in to their financial statements. This is part of how these companies make their pocket books not look so grotesqly overloaded. Like the oil companies they reinvest to up production.