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Samsung and SK Hynix plan $590 billion chip investment as AI demand sends memory prices soaring
Samsung and SK Hynix are embarking on an ambitious $590 billion investment plan to enhance chip production, prompted by an unprecedented demand for memory chips driven by AI data centers. This initiative, supported by the South Korean government, includes the development of four new factories and a packaging center. Analysts project significant price hikes in memory chips, highlighting the urgency for increased production capacity to meet future demand and stabilize market prices.
MonitorConfidence: HighMid term horizon
Published 29 Jun 2026, 10:10 UTC1 min read
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Summary
TL;DR
- Samsung and SK Hynix plan to invest $590 billion in chip manufacturing.
- Investment includes new factories aimed at supporting AI demands.
- Memory prices expected to rise significantly in the coming years.
- South Korean government's backing indicates a national economic strategy.
- Both companies control roughly 80% of the high-bandwidth memory market.
Interesting facts
- The investment plan includes 800 trillion won for factories and 81 trillion won for a packaging center.
- Memory prices could surge by 40-50% by Q3 2026.