The South Korean company SK Hynix will invest $720 billion in creating the world's largest network of factories for computer memory designed for artificial intelligence. This was reported by CNBC.
Over the past year, SK Hynix's market capitalization has increased more than fivefold, exceeding $1 trillion amid high demand for artificial intelligence technologies. In the first quarter, the company held 58% of the high-performance memory market, surpassing Samsung and American Micron, which each held 21%.
To finance the project, the manufacturer raised $26.5 billion in July through a stock listing on the Nasdaq exchange. SK Group President Chey Tae-won noted that there is a sharp shortage of components in the market.
As part of the expansion, SK Hynix is also building its first $4 billion facility in the United States in Indiana, with completion expected in 2028.
Earlier, in 2020, the company reached an agreement to acquire Intel's NAND memory production business for $9 billion. In January of this year, it launched a subsidiary in the U.S. with a capital of $10 billion.
At the same time, American competitors are expanding their production capacities. Micron is investing $50 billion in building factories in Idaho and is constructing a $100 billion production complex in New York.
