Memory Chip Makers Face Sharp Share Declines as AI Investment Plans and Legal Risks Stir Market

On July 2, Samsung fell >7 % and SK Hynix >9 % at the open, pulling the Kospi lower. In the U.S., Micron slid 10 % after a record Q3 beat and Sandisk fell 13 %, echoing a Nasdaq chip-stock sell-off.

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SK Hynix announced a 100 trillion-won (US$64 billion) plan for a new NAND fab (M17) and a P&T7 packaging plant in Cheongju, slated for 2029, while Samsung and SK Hynix will receive 800 trillion won from the government to expand AI infrastructure; SK Hynix targets 5 GW initially and 15 GW long-term.

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Samsung fell 7 % and SK Hynix 9 % (SK Square down 10 %). Micron dropped 10 % after a record Q3 beat. Sandisk fell 13 % after an 856 % YTD gain. South Korean June exports rose 70.9 % YoY to $102.25 billion, though DRAM/SSD unit prices fell.

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SK Hynix CEO Kwak Noh-jung said the 100 trillion-won program targets soaring demand for memory, DRAM, SSDs and NAND, and that the firm will build AI data centers in phases, starting with 5 GW. The South Korean government confirmed the 800 trillion-won semiconductor fund, naming Samsung and SK Hynix as beneficiaries.

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Investor Michael Burry warned that South Korea’s AI-chip spending “could be the beginning of the end,” doubting its returns. An antitrust suit filed in late June alleges Micron, Samsung and SK Hynix colluded to curb DDR3/DDR4 output, forcing a shift to HBM and adding regulatory risk.

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Korean analysts forecast strong Q2 profit growth for Samsung and SK Hynix, but a one-off bonus provision could depress operating profit, suggesting earnings may exceed 100 trillion won. The antitrust suit’s impact on Micron pricing is unknown, and SK Hynix’s July 10 Nasdaq ADR listing adds demand uncertainty.

Micron Technology Inc Stock (MU) Moved Down by 4.27% on Jul 2: What Investors Need To Know

• “These investments are aimed at meeting the soaring demand for HBM servers and DRAM, as well as enterprise SSDs and NAND, as AI services take off,” — Kwak Noh-jung, CEO, SK Hynix

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• “We plan to build AI data centers across the country in phases, starting with an initial capacity of 5 gigawatts (GW) and eventually scaling up to 15 GW,” — Kwak Noh-jung

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• “I see that as the beginning of the end,” — Michael Burry, investor

SK Hynix to spend US$64.4 billion on flash memory chip plants under broader AI investment plan

• “As demand for memory expands in all directions due to the spread of AI, structural supply shortages will continue until 2028.” — Choi Bo-young, researcher, Kyobo Securities

Tensions are also growing in domestic semiconductor stocks as the stock price of memory chip maker M. .

Aggressive AI-driven spending, legal challenges and a market correction pressure valuations of leading memory producers. Ongoing shortages could limit AI data-center growth, while over-investment risks excess capacity if AI demand wanes.

SK Hynix to spend US$64.4 billion on flash memory chip plants under broader AI investment plan

SK Hynix begins U.S. ADR trading on July 10; Samsung’s Q2 earnings arrive next week. Investors will watch the Micron antitrust case and any changes to the AI-chip funding plan.

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