Key Highlights
- At Computex in Taipei, SK Group Chairman Chey Tae-won revealed a strategic initiative to double the company’s wafer production capacity within five years.
- SK Hynix dominates the high-bandwidth memory sector with 58% market control, while Samsung and Micron trail at 21% each.
- The South Korean semiconductor manufacturer achieved a historic $1 trillion market capitalization milestone last week.
- Goldman Sachs analysts increased their 2028 operating profit projection for SK Hynix by 24%, reaching 454 trillion won (approximately $299.62 billion).
- Chairman Chey cautioned that rapid price escalation in DRAM and HBM technologies could threaten the AI industry’s long-term viability.
SK Hynix is making an aggressive push into expanded production. The parent company, SK Group, announced Tuesday its intention to double wafer manufacturing capacity across the next half-decade, positioning itself to capitalize on surging artificial intelligence demand that has placed memory semiconductors at the heart of technological advancement.
Speaking at Computex in Taipei—a premier annual conference for semiconductor industry leaders and technology executives—Chairman Chey Tae-won outlined the ambitious expansion strategy. The event also featured representation from Nvidia, which stands among SK Hynix’s most critical business partners.
“Our objective is to double our entire production capacity throughout the coming five years,” Chey explained to journalists. “While numerous challenges lie ahead, we’re committed to overcoming them and achieving this expansion.”
While the goal is undeniably bold, market fundamentals strongly support the strategy. Artificial intelligence applications are driving unprecedented consumption of high-bandwidth memory (HBM) chips, a category where SK Hynix has established dominant market leadership.
According to data from Counterpoint Research, the company commanded 58% of worldwide HBM market share during the first quarter of 2026. Samsung and Micron each captured 21% of the market.
Last week marked a significant milestone for SK Hynix as its market capitalization surpassed $1 trillion for the first time, placing it alongside Samsung and Micron in achieving this valuation threshold. The stock surge reflects widespread investor confidence in AI growth prospects and sustained demand for cutting-edge memory technologies.
Chey also reinforced a previous cautionary statement: global semiconductor wafer supply constraints may continue through 2030. This projection, originally shared in March, explains the urgency behind the company’s current production scaling efforts.
Battle for Next-Generation Nvidia Systems
Chairman Chey emphasized SK Hynix’s ambition to serve as a primary supplier for Nvidia’s forthcoming Vera Rubin AI platform. “Currently, there’s just one HBM4E customer,” he stated, clearly referencing Nvidia.
He further indicated that SK Hynix intends to cultivate additional collaborative relationships throughout Taiwan, extending beyond its established alliance with TSMC. This strategy suggests the manufacturer aims to strengthen its presence across the island’s comprehensive semiconductor infrastructure during its expansion phase.
Meanwhile, Samsung made its own announcement at Computex on Tuesday, presenting a prototype of its HBM5 chip while introducing innovative thermal management solutions for the product. Just last week, Samsung confirmed it had started delivering HBM4E chip samples to clients—gaining a distribution advantage over competitors for that particular product line.
Wall Street Upgrades Outlook
Financial analysts are responding positively to these developments. Goldman Sachs recently elevated its 2028 operating profit projection for SK Hynix by 24%, pushing the estimate to 454 trillion won, equivalent to roughly $299.62 billion. Samsung received a comparable upgrade of 23.3%, with forecasts reaching 610 trillion won.
Both revisions stem from expectations of continued AI-driven demand for memory semiconductor products.
Despite the optimistic outlook, Chairman Chey emphasized caution regarding pricing strategies. He warned that aggressive price increases for DRAM and HBM products could potentially harm the broader AI ecosystem and compromise sustainable long-term expansion.
“The entire artificial intelligence sector requires greater sustainability,” he remarked. “Abrupt price spikes risk becoming problematic and could actually undermine long-term sustainability.”
Goldman Sachs’ updated 2028 operating profit estimate for SK Hynix is set at 454 trillion won (approximately $299.62 billion).
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