SK Hynix said it expects a full recovery in the memory market, led by surging AI-related demand, and lifted its capital spending plans.
SK Hynix earlier said it’s investing some $15 billion in South Korea to meet surging demand for such high-end chips, on top of a plan to spend $3.9 billion on an advanced packaging plant and research center for artificial intelligence products in Indiana. That more than doubled the world’s No. 2 memory maker’s quarterly sales, the company’s fastest pace of revenue expansion in over a decade, while operating profit blew past estimates.
Investment in 2024 will be slightly higher than planned at the start of the year, with the bulk of spending to focus on high-margin products and infrastructure for medium-term growth, Kim said.“We will balance investing in future growth with ensuring financial soundness, given our current level of cash generation.”