- Micron and Samsung recently revealed they’re expanding their DRAM manufacturing lines.
- Following this, SK Hynix has also announced it is expediting work at its new fab.
- The goal is to meet the HBM chip demand made with DRAM and used in AI chips.
The global memory crisis is at its peak, with RAM prices reaching astronomical levels that are now unaffordable for most people. Amid all this, major manufacturers are trying to meet the demand by expanding their operations.
Micron revealed that it is investing a whopping $200 billion to increase its DRAM production limits. Following this, SK Hynix is also expanding its operations by building new, larger manufacturing lines.
Why it matters: The global DRAM manufacturing is mainly handled by three companies: Samsung, Micron, and SK Hynix, so if they are to meet the requirements, they do need to expand rapidly for things to go back to normal.
The Elec has confirmed that SK Hynix will open its first cleanroom at its new fab in Yongin, South Korea, in March next year, 2 months ahead of the initial timeline. It’s also doing the same for its M15X plant in Cheongju.
The general aim is to meet demand for the HBM4 chip amid the AI boom. The demand for these chips has surged in recent months, and they are made using DRAM, which is then used in AI chips, causing a massive global shortage.
While AI software companies primarily require those AI chips because DRAM is used in them, this affects global RAM manufacturing as well. This is what has led to the drastic price increase in DDR5 RAM.
Samsung also recently announced the expansion of its operations. Unfortunately, most of these manufacturing lines will be operational from 2027, which means the prices will remain high throughout this year, and budget gamers will have to stick with DDR4.
What are your thoughts on SK Hynix expanding operations to meet the global DRAM shortage? Let us know your opinions in the comments or join the discussion at the official Tech4Gamers Forum.
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News Reporter
Abdullah is an avid gamer who primarily plays single-player titles. If you can’t find him anywhere, he’ll probably be at his desk playing The Witcher 3 for the millionth time. When he isn’t playing games, he’s either reading or writing about them.
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