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.
