Why Is DRAM Falling Today? Samsung, SK Hynix Are Reportedly Preparing $1.3 Trillion Investment Plan - TradingView

The recent decline in DRAM prices is attributed to market reactions to reports that Samsung and SK Hynix are preparing a $1.3 trillion investment plan over the next decade. The investment will focus o... Read original →

Samsung and SK Hynix’s trillion-dollar investment isn’t just an AI bet—it’s a panic move to close looming technology gaps. This will force Micron to accelerate CoWoS-compatible HBM development and may compel NVIDIA to redesign memory bandwidth architectures. Yet with U.S.-EU subsidies demanding local fab commitments and Taiwan, China’s capacity constraints, such capex will inflate compliance costs and supply chain redundancy. The U.S. Treasury could leverage this to demand higher domestic production quotas. Near-term selloffs reflect overcapacity fears, but if HBM4/5 standardization lags, these investments will crush sector margins. Over the next 18 months, only players mastering TSV yield and securing AI anchor clients will survive the 'high-capex, low-elasticity' DRAM era.