SK Hynix Memory Expansion Faces Major Delays as New Capacity Falls Short

SK hynix may add only a small share of its planned memory production capacity by 2028, raising fresh concerns about DRAM supply, pricing, and the long timeline required to build new chip factories in South Korea.

A recent Bank of America analysis suggests that SK hynix could bring online only one-sixth of its originally planned capacity additions by 2028. The report also challenges expectations that new memory supply will arrive quickly enough to ease current market pressure.

New Memory Fabs Will Take Years to Complete

South Korea plans to expand memory production through major Samsung and SK hynix facilities in Gwangju and Jeolla. However, building these sites will take much longer than political targets suggest.

According to a Taiwanese memory chip industry insider, companies may need around five years to complete the foundations, followed by another three to four years to install clean rooms and chipmaking equipment. The full production ecosystem may take more than a decade to finish.

Older plants will also lose capacity as manufacturers upgrade equipment and move to smaller production processes. As a result, South Korea may increase operating wafer capacity by less than 10 percent each year, leaving the country well below its goal of doubling memory output by 2030.

DRAM Supply Concerns Could Continue

The slow expansion means DRAM supply may remain tight while Samsung, SK hynix, and Micron continue shifting resources toward high-bandwidth memory used in AI systems.

The three companies also face a class-action lawsuit in California over claims that they reduced DDR3 and DDR4 production while prioritising HBM. Limited capacity growth could now increase scrutiny around supply decisions and memory pricing during the recent market surge.