SK Hynix Board Approves $38 Billion Fab Spend as Micron Shares Tick Higher
The Korean capex approval reinforces a supply lag that supports strong memory demand and focuses attention on Micron’s September earnings as the next market test.
Overview
- SK Hynix’s board approved 54.3 trillion won, about $38.15 billion, for new fabrication plants in South Korea on Friday, adding to a larger June plan with Samsung.
- Micron shares rose about 1.6% in Friday premarket trading while SK Hynix ADRs slipped and the company’s Seoul-listed stock fell, reflecting mixed investor reaction to the spending news.
- Industry analysts note that building large fabs takes years so the new investment is not expected to add substantial memory capacity for at least another year.
- Wall Street consensus expects a materially stronger quarter for Micron when it reports around Sept. 22, with forecasted EPS near $31.24 and revenue around $50.72 billion, and several firms have raised price targets this year.
- Risks remain: Citi cut its Micron price target and warned DRAM and NAND prices may peak in 2027, and China’s memory capacity expansion is flagged as a longer-term competitive threat.