Business · Companies · 3 hrs ago
Samsung and SK Hynix speed up chip expansion amid AI demand
Samsung Electronics and SK Hynix are expanding memory-chip production as customers seek more supply.
The South Korean companies make memory chips used in AI servers and other electronics.
Customers are asking for more chips than suppliers can provide, and some are seeking long-term supply deals.
At the same time, the International Monetary Fund and Gartner have warned that excessive AI investment could hurt growth and leave infrastructure spending without its expected value.
New chip capacity takes years to build, and added production is expected to make a meaningful difference from the middle or later part of next year.
SK Hynix has brought forward the opening of a cleanroom at its first Yongin factory, while Samsung plans to expand production at its Pyeongtaek site.
The companies face pressure to add capacity before rivals do, as US and Chinese chipmakers also expand and ASML says equipment supply may not meet demand.
Samsung Electronics and SK hynix are accelerating plans to expand chip production as AI-related demand outstrips supply.
SK hynix has moved up the opening of the first cleanroom at its first Yongin plant by three months, to February next year.
Samsung plans to expand capacity at its Pyeongtaek site, including preparing DRAM production for next-generation high-bandwidth memory.
Customers are seeking additional supplies and negotiating long-term contracts, even as analysts warn that AI investment may not earn expected returns.
ASML says its planned equipment supply for 2027 and 2028 may not meet customer demand.
SK Group chairman Chey Tae-won has warned that faster expansion by Chinese companies and Micron could reduce South Korea’s market share.
- Who
- Samsung Electronics and SK hynix are expanding production; customers are seeking more chips.
- What
- The companies are speeding up capacity expansion amid strong AI-related demand.
- When
- The article was published on October 17, 2026; several projects and forecasts refer to the coming years.
- Where
- South Korea, including SK hynix’s Yongin and Cheongju sites and Samsung’s Pyeongtaek site.
- Why
- Customer demand for memory chips exceeds available supply, while the companies are concerned about competition for market share.
This story does not have two clearly opposing sides.
SK hynix said major technology companies continued to request additional supply and customer demand exceeded its supply capacity.
Chey Tae-won discussed expansion by Chinese companies and Micron in Shanghai and warned that South Korea could lose market share.
ASML said its planned supply for 2027 and 2028 would not fully meet customer demand.
Hankyung published its report on Samsung and SK hynix accelerating chip expansion.
- SK hynix Yongin cleanroom
- Opening moved from May to February next year
- SK hynix Cheongju site
- M15X production schedule brought forward
- Samsung Pyeongtaek
- P5 planned to expand production capacity
- ASML equipment supply
- Planned 2027 and 2028 supply may not meet customer demand
- Cloud capital spending
- TrendForce forecast more than $1.5 trillion next year, up 60% year on year
What people are saying
Despite active investment by semiconductor companies including us, the market view is that it is not enough to respond to explosive demand
There is enormous demand, but if we cannot expand factories, that is the problem