Korean chip manufacturer SK hynix had been planning to double its memory production capacity by 2030 and 2031 from current levels, even before a request from NVIDIA CEO Jensen Huang, suggests a report from the Korean media. The NVIDIA CEO wrote "please make more" on a hynix wafer at the Computex conference in Taiwan, and supply chain sources suggest that the memory manufacturer plans to expand its DRAM wafer input capacity to one million per month by 2030.
SK hynix's Chinese Production Facilities To Play Key Role In Memory Production Capacity Expansion, Says Report
With the passage of time, as chip manufacturers initially focused on ramping up GPU and packaging production, the key role that memory plays inside an AI GPU was pushed into the background. The resulting boom in GPU demand led by the AI infrastructure rollout means that memory production for DRAM modules that are assembled together to create a high bandwidth memory (HBM) package ended up being constrained.
Now, supply chain sources in Korea quoted by The Elec claim that memory manufacturer SK hynix is aggressively expanding its memory production capacity. Hynix's capacity expansion plans came before NVIDIA CEO Jen-Hsun Huang requested the firm make more wafers, writing the request on a memory wafer at Computex in Taiwan.
At the center of hynix's expansion is the Yongin semiconductor manufacturing cluster in Korea, where the firm aims to nearly double production capacity by 2030. Its plant in Wuxi, China, which is responsible for close to half of the firm's current DRAM production, will also play a role in the expansion.
SK hynix's Facilities In Korea Will Play Key Role In Production Expansion
As per the details, SK hynix's Yongin cluster is at the center of the planned capacity expansion. While the firm is currently capable of processing 550,000 DRAM wafers per month, SK hynix aims to double the capacity to one million wafers per month by 2030. This expansion will be driven by the Yuxi facility, whose Phase One is divided into six cleanrooms, of which the first will start receiving equipment in February 2027.
SK hynix will then add 60,000 wafer capacity to the Yuxi facility and then continue to expand the production capacity by a similar amount during each subsequent six-month period. Through these additions, the first phase of the facility will have a capacity of 360,000 wafers by 2030. Additionally, the firm will also add 80,000 wafer production capacity to its MI5X facility in the Cheongju Technopolis complex.
The Elec's sources add that while the market is enthusiastic about SK hynix's expansion plans, there is some apprehension about whether the demand for the additional products manufactured will rise. Additionally, the firm's manufacturing partners are also wary of previous capital expenditure boosts that were followed by sudden equipment order drawdowns, leading to a similar outcome this time around.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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