South Korea's electricity grid cannot support the rapid expansion of AI memory chip factories by SK Hynix and Samsung, as the state utility KEPCO's demand for upfront payments to upgrade the grid was rejected by both companies. This power supply issue poses a significant bottleneck for the semiconductor supply chain, despite strong demand for high bandwidth memory driven by AI. The government and companies must negotiate who will bear the infrastructure costs, with possible outcomes including public funding, cost-sharing, or delays in factory buildouts. SK Hynix is also expanding production in the U.S. to mitigate risks. The resolution of this grid capacity challenge will impact the pace of AI memory supply growth and market pricing.
As of Sep 15, 2026 22:21 WIB, SK Hynix shares trade at USD 175.09 on Pluang, down 0.31% for the day. The company holds a market cap of $894.54 billion, reflecting its significant role in the technology sector despite current challenges in expanding AI memory chip production due to power supply constraints. These infrastructure issues could influence SK Hynix's growth trajectory and market valuation going forward.
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SK hynix Inc. is rated Buy with a $211 price target, implying a 47% upside driven by expected 44–121% price increases in 2027 High Bandwidth Memory (HBM) contracts. The repricing of HBM is set to become SK hynix's main profit driver, especially throu...
SK hynix Inc. is set to report its Q3 earnings on October 28, following Micron's recent results that indicated rising memory prices and demand. In Q2, SK hynix saw a 257% year-over-year revenue increase to KRW 79.3 trillion with a 76% operating margi...
