SK Hynix Share Rebound Linked to Decade‑Long Capacity Expansion
SK Hynix Inc (KS:000660) recovered from early‑session losses, rising 2.6% to finish at 21 million won after having slipped as much as 3.5% earlier in the day. The rebound contributed to the KOSPI index recouping some of its initial declines, although the broader index remained in negative territory.
In parallel, rival Samsung Electronics Co Ltd (KS:005930) posted a decline of more than 1%, reflecting broader pressure on technology stocks.
SK Group Chairman Chey Tae‑won told Nikkei Asia on Wednesday that SK Hynix intends to triple its wafer production capacity by 2034. The expansion is aimed at satisfying rapidly growing demand for advanced memory chips that are essential for artificial‑intelligence applications.
The article notes that SK Hynix is among the world’s largest memory‑chip manufacturers and has recently benefited from an AI‑driven surge in demand, which tightened memory markets and pushed prices higher. Consequently, the company’s market valuation exceeded $1 trillion in the preceding month.
Despite the valuation boost, the stock experienced an 11% decline last week as investors engaged in profit‑taking and expressed doubts about the sustainability of the AI‑related trade uplift. Additionally, concerns over rising global interest rates added further headwinds to technology‑sector equities.
Key figures:
- Share price rise: +2.6% to 21 million won
- Earlier intra‑day fall: –3.5%
- Market cap milestone: >$1 trillion
- Recent weekly decline: –11%
- Capacity target year: 2034
- Samsung stock move: –1%+
Implications: The capacity‑tripling plan underscores SK Hynix’s strategic focus on meeting AI‑related memory demand, while short‑term price volatility reflects profit‑taking and macro‑economic concerns.