The chipmaker approved $38 billion for new memory fabs, citing AI demand, but investors reacted cautiously to the capital outlay.
SK Hynix shares fell 5% to $136.79 after its board approved $38 billion to build two new memory fabs in South Korea. The investment targets DRAM and NAND flash capacity, with roughly two-thirds allocated to DRAM to meet AI-driven demand.
The move follows warnings from the CEO about a potential 2027 memory shortage. Seagate dropped 7% on profit-taking, while Micron and SanDisk saw smaller declines. The Roundhill Memory ETF fell 2% to $50.37, reflecting uneven sentiment across the sector.
The $38 billion outlay includes 54 trillion won for the Yongin Y2 DRAM plant and Cheongju M17 NAND flash facility. The decision to defer shareholder returns to Q3 added to investor caution.