SK Hynix said on June 24 its board approved a plan to issue new shares backing American Depositary Receipts on the Nasdaq Global Select Market, targeting up to KRW45.45 trillion (approx. US$29.43 billion) in proceeds for semiconductor facility investment.
Phison Electronics CEO Khein-seng Pua said the NAND flash market is facing a supply crunch with "no end in sight," as AI continues to crowd out memory capacity and push storage demand higher.
South Korea's government is in talks with Samsung Electronics and SK Hynix over a potential new phase of large-scale semiconductor investments, as the two chipmakers review plans that could include front-end fabrication plants and packaging facilities across the country's Honam and Chungcheong regions. Both companies say no final decisions have been made.
SK Hynix is reportedly easing the pace of some HBM4 production conversions and redirecting more attention toward commodity DRAM, as a sharp profitability reversal makes the broader memory market too profitable to ignore.
Samsung Electronics is putting long-term memory supply agreements higher on its second-half agenda as demand from data centers broadens beyond high-bandwidth memory, or HBM, into server DRAM and storage products.
SK Hynix's semiconductor production base in Cheongju, South Korea, has seen a string of accidents since 2026, prompting questions over whether its safety management system has gaps. The incidents have drawn scrutiny because many occurred after the M15X fab began operation, as the company ramped up production to meet surging high-bandwidth memory (HBM) demand.
SK Hynix briefly overtook Samsung Electronics on June 22 to claim the top spot by common-share market capitalization on South Korea's KOSPI exchange, a milestone that reflects how high-bandwidth memory (HBM) has redefined the value of Korea's semiconductor industry.
The memory industry is entering a super cycle as prices keep soaring, with industry sources saying third-quarter 2026 contract price gains show no sign of slowing amid tight supply from upstream vendors. Overall increases could reach 30% to 40%, after second-quarter 2026 contract prices already climbed 40%. As market prices continue to stack higher in the second half, profits at the top three memory manufacturers are set to expand sharply, driving a surge in full-year memory business earnings.
AI-driven memory price spikes are presenting a challenge for Samsung's smartphone business, with rising component prices eroding the affordability of its budget phones. At the same time, Samsung is seeking to use its new AI features to encourage new device purchases as memory prices dampen smartphone sales globally.
Taiwan's memory chip designers are heading into a sharply stronger 2026 as rising memory prices and a wave of AI-driven demand push the industry away from consumer electronics and toward higher-value data center and AI applications.
