SK Hynix is investing $12.85 billion in a new South Korean fab dedicated to advanced packaging for AI memory products, particularly high-bandwidth memory (HBM) chips. The move comes amid a 'memory supercycle' driven by AI data centre demand, with DRAM contract prices surging 55-60% quarter-on-quarter in Q1 2026 and server DRAM up over 60%. HBM capacity reallocation for AI accelerators like Nvidia GPUs has squeezed conventional memory supply, pushing enterprise buyers to scramble for stock. Companies like HP and Cisco have already warned of margin pressure. SK Hynix predicts the shortage will persist until late 2027, meaning meaningful price relief remains over a year away despite the new investment.
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