SK Hynix plans major capacity expansion amid continued AI-driven demand
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SK Hynix plans to double wafer production capacity over the next five years, deepen Taiwan partnerships beyond TSMC and expand its role as a major HBM supplier for Nvidia; it held a 58% HBM market share in Q1 and recently surpassed a $1 trillion market value. Goldman Sachs raised SK Hynix’s 2028 operating profit forecast by 24% to 454 trillion won, reflecting AI-driven demand, though the chairman warned wafer shortages could persist to 2030 — developments that strengthen infrastructure for crypto analytics, DeFi and CEX compute and broader adoption.
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SK Group Chairman Chey Tae-won said on Tuesday that the company's memory chip subsidiary, SK Hynix, plans to double its wafer capacity over the next five years as demand for advanced semiconductor products continues to grow.
Chey made the remarks during the Computex conference in Taipei, where executives from some of the world's leading technology companies, including Nvidia, gathered to discuss developments across the semiconductor and artificial intelligence sectors.
Expansion plans amid ongoing supply concerns
The chairman's comments come months after he warned that a global chip wafer shortage could continue until 2030.
At the Taipei event, Chey reiterated the importance of strengthening the company's manufacturing capabilities to support future growth.
According to Chey, expanding wafer capacity is a key objective for SK Hynix over the next five years.
The planned increase comes as the semiconductor industry faces rising demand driven by artificial intelligence applications and data-intensive computing systems.
Looking beyond TSMC for Taiwan partnerships
Chey also highlighted the need for broader collaboration within Taiwan's semiconductor ecosystem.
He said SK Hynix requires more partnerships in Taiwan and should not rely solely on cooperation with TSMC, the world's largest contract chipmaker.
The comments suggest the company is seeking to deepen its engagement with additional industry partners as it expands production capacity and strengthens its position in the global memory market.
Targeting a larger role in Nvidia's ecosystem
Chey said he hopes SK Hynix can become a major supplier of high-bandwidth memory (HBM) for Nvidia's Vera Rubin system.
SK Hynix is already Nvidia's leading supplier of HBM chips, a category of advanced memory products that has become increasingly important in supporting AI workloads and high-performance computing applications.
The company's focus on expanding its role in Nvidia's supply chain aligns with growing demand for AI-related semiconductor components.
Market value surpasses $1 trillion
Last week, SK Hynix surpassed a market value of $1 trillion for the first time.
The milestone places the company alongside rivals Samsung Electronics and Micron Technology, which have also reached the trillion-dollar valuation mark.
The achievement came amid a strong rally in semiconductor stocks, supported by investor optimism surrounding artificial intelligence and its impact on future chip demand.
According to Counterpoint Research, SK Hynix held a 58% share of the global HBM market during the first quarter.
Samsung Electronics and Micron each accounted for 21% of the market during the same period.
AI boom reshaping memory industry
Chey's remarks come as analysts increasingly argue that the AI boom is changing the dynamics of the traditionally cyclical memory chip industry.
Reflecting that view, Goldman Sachs recently raised its 2028 operating profit forecasts for both SK Hynix and Samsung Electronics.
The firm increased its forecast for SK Hynix by 24% to 454 trillion won ($299.62 billion) and raised its forecast for Samsung Electronics by 23.3% to 610 trillion won.
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