SK Hynix to Spend $107 Billion on Four New Memory Chip Factories

Discussion in 'HardForum Tech News' started by cageymaru, Feb 21, 2019.

  1. cageymaru

    cageymaru [H]ard|News

    Messages:
    19,238
    Joined:
    Apr 10, 2003
    SK Hynix has announced that it is building four new memory chip plants that will cost $107 billion. Construction of the plants will begin in 2022 at a 4.5 million square meter site that is south of Seoul. SK Hynix is expected to invest $49 billion into 2 existing plants. Next-generation chips and DRAM are expected to be manufactured at the sites. Even though there is a downturn in the memory market now, SK Hynix is preparing for cutting edge technologies such as 5G and self-driving vehicles.

    "Though there is not enough chip demand for autonomous cars now, I believe there will be much more demand for self-driving vehicles in the next 10 years or as early as in 2023 or 2024," said analyst Kim Young-gun at Mirae Asset Daewoo. "That will create more chip demand for SK Hynix," as will the commercialization of 5G networks over the next few years, Kim said.
     
  2. CombatChrisNC

    CombatChrisNC [H]ard|Gawd

    Messages:
    1,116
    Joined:
    Apr 3, 2013
    War is n Korea isn't going to happen. Else there wouldn't be investments like this. That's my take.

    Oh, and I guess we'll finally see some lower prices.
     
  3. blackacidevil

    blackacidevil Gawd

    Messages:
    651
    Joined:
    Oct 1, 2004
    Or more likely they'll raise prices because where's 107 billion dollars gonna come from?
     
    Armenius likes this.
  4. coynatha

    coynatha Limp Gawd

    Messages:
    227
    Joined:
    Jun 9, 2004
    They already have it. Haven't you seen prices the last few years?
     
  5. haste.

    haste. [H]ard|Gawd

    Messages:
    1,652
    Joined:
    Nov 11, 2011
    Bold move cotton. I'm never a person to challenge forward thinking in an organization.
     
  6. Qthulu

    Qthulu [H]Lite

    Messages:
    103
    Joined:
    Apr 19, 2018
    Yes, I've got an order here for a mister ray ban. Did someone order a set of teeth.
     
  7. KazeoHin

    KazeoHin [H]ardness Supreme

    Messages:
    7,761
    Joined:
    Sep 7, 2011
    107 BILLION dollars? So like, 1 quarter year of the profits they've been raking in with the RAM price gouging they've been partaking in...
     
  8. NKD

    NKD [H]ardness Supreme

    Messages:
    7,390
    Joined:
    Aug 26, 2007
    I agree with the ram prices and stuff but they are not even remotely taking anything close to that in quarterly profits.
     
  9. TheOne&OnlyZeke

    TheOne&OnlyZeke 100% Irish

    Messages:
    10,186
    Joined:
    Jul 21, 2000
    Would love to see lower prices because of this...but we all know that won't happen
     
  10. Joseph F

    Joseph F Gawd

    Messages:
    732
    Joined:
    Jan 3, 2012
    They cleared 3 billion US in Q4 2018. Obviously, they will need to seek lenders for these expansions.
     
    Armenius and captaindiptoad like this.
  11. KazeoHin

    KazeoHin [H]ardness Supreme

    Messages:
    7,761
    Joined:
    Sep 7, 2011
    Poes law, sorry.
     
  12. Calavaro

    Calavaro Whiskey & Honey

    Messages:
    7,973
    Joined:
    Apr 11, 2001
    107 Billion is an insane investment. One wrong flood and hard drive prices will spike! Oh thats right....
     
  13. Grimlaking

    Grimlaking 2[H]4U

    Messages:
    2,673
    Joined:
    May 9, 2006
    They can cover this with financing easy. Plus don't forget how much of this investment is already baked in to their financial statements. This is part of how these companies make their pocket books not look so grotesqly overloaded. Like the oil companies they reinvest to up production.