Gregory Wong, an analyst with Forward Insights, however, said Hynix's expansion plans may also be in response to pressure from the Korean government, which "has been badgering Samsung and SK Hynix to invest in the local economy."
This type of announcement is meant to curry favor with the government," Wong said. "It may also be a veiled warning to China that SK Hynix can... out-invest it if it develops its own indigenous memory industry."
The Hynix investment will come in two parts: The company will spend $26.9 billion to build two new semiconductor foundries by 2024, and it will also spend $12.7 billion to expand its existing M14 foundry. That investment is to accelerate production to 200,000 300mm wafers per month.
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