SK Hynix is moving up the opening of a new factory by three months and will begin operating another new plant in February, a senior executive said, responding to intense pressure on global memory supply.
The South Korean chipmaker's decision follows a worldwide memory chip shortage that has increased prices for phones and PCs and delayed data center construction for artificial intelligence.
"We have to support memory consumption for AI infrastructure," said Sungsoo Ryu, CEO of SK Hynix America, in an interview.
Ryu stated the company, a major supplier to Nvidia, will open the first factory at its Yongin facility in South Korea three months early, now set for February 2027. Additionally, it plans to start deploying silicon wafers next month into a new fab called M15X in Cheongju, South Korea, to manufacture high-bandwidth memory chips.
HBM chips are utilized by Nvidia, Advanced Micro Devices, and others to build systems for AI applications.
This marks the first report of SK Hynix accelerating its timetable at the Yongin site. A local media outlet had previously covered the firm's HBM production plan, citing unnamed industry sources.
The Yongin fab, located 40 kilometers south of Seoul, is part of a planned 600 trillion won investment in a "Semiconductor Cluster" that will eventually include four fabs.
Ryu did not give specifics on the production capabilities of the first Yongin fab but said the extra capacity would be "very helpful" in meeting customer needs.
Analysts estimate the initial Yongin fab's capacity would be similar to the company's complex in Icheon, which houses several factories.
Ryu noted that customers, including hyperscalers, are increasingly seeking multi-year supply agreements instead of the one-year contracts more common previously, as they rush to secure long-term supplies.
The global memory chip market is witnessing an unprecedented boom, with prices for some products soaring over 300% in the fourth quarter compared to a year earlier, according to market tracker TrendForce, as demand for AI infrastructure strains production.
Ryu said SK Hynix is reviewing production plans monthly to ensure it can support customers.
"Structural changes are happening now in the memory chip market," Ryu said, adding he has seen no signs of demand slowing.
"We are seeing a lot of tremendous and humongous demand," he said.
Shares of SK Hynix, the world's second-largest memory chipmaker after Samsung Electronics, have surged 280% over the past year.