South Korean chipmaker SK Hynix (NASDAQ:SKHY) said Thursday it will begin volume production of next-generation HBM4E chips at its Indiana facility in the third quarter of 2029, as CEO Kwak Noh-Jung warned the current memory shortage will persist through 2030.
Billion-Dollar Bet on U.S. AI Supply Chain
The more than $4 billion project will expand SK Hynix’s presence in the United States as growing AI investment drives demand for high-bandwidth memory.
The site at Purdue Research Park will allow the company to produce chips closer to major customers such as Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL).
Jung said, “The United States is the epicenter of AI innovation, bringing together premier customers, top-tier R&D capabilities, and partners, and the Indiana fab will become a gateway to deliver first Made in USA HBM products.”
Dominant Market Position Reinforces Bullish Outlook
According to Counterpoint Research, SK Hynix held 58% of the global HBM market by revenue in the first quarter of 2026, outpacing Samsung Electronics and Micron Technology (NASDAQ:MU), each at 21%.
Nvidia, a major SK Hynix customer, forecast a 70% jump in revenue for the next fiscal year, reinforcing confidence in sustained AI-chip demand and supporting Kwak’s view that the memory upcycle has room to run.
The U.S. government supported the project with $458 million in CHIPS Act grants and up to $500 million in loans, with the funding finalized in December 2024.
Trading Metrics
SK Hynix has a market capitalization of approximately $912.37 billion. Its stock has traded between a 52-week high of $194.45 and a 52-week low of $124.80.
Over the past month, the large-cap stock gained 24.15%.
Needham analyst N. Quinn Bolton raised his price target on SK Hynix to $220 from $200 on Monday, maintaining a Buy rating.
Price Action: SKHY closed the regular session on Thursday at $161.61, up 2.27%, according to Benzinga Pro data. The stock is down 0.58% in after-hours trading.
With a strong Growth score of 98.37, Benzinga’s Edge Stock Rankings indicate that SKHY has a positive price trend across all time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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