SEOUL Dec 18 South Korea's SK Hynix Inc
will invest 15 trillion won ($14.27 billion) to
build and buy new facilities for dynamic random access memory
(DRAM) production in Icheon from 2014 to 2021, newspaper Chosun
Ilbo reported on Wednesday, citing an unnamed high-ranking
Shares of U.S. memory semiconductor maker Micron Technology
dropped more than 6 percent due to concerns that an
increase in the global supply of DRAM could hurt chip prices in
the highly cyclical memory industry.
Hynix, the world's second-biggest memory-chip maker, said
that it is considering building a new plant to replace an aging
production line in the city of Icheon, southeast of Seoul.
A spokeswoman for SK Hynix declined to comment on how much
the company will invest in the new production line.
The move comes after SK Hynix, which trails Samsung
Electronics, posted two quarters of record profit
for July to September, benefiting from a rally in the
memory-chip market driven by the boom in smartphones.
"We believe the directional move in Micron shares today is
correct but the magnitude is overdone. We still believe DRAM
supply is in structurally better shape now than it has been in
decades," Raymond James analyst Hans Mosesmann wrote in a note
SK Hynix currently has a production line called "M10" in
Icheon, which started work in 2005. It has three other plants in
the city of Cheongju in South Korea and one in China's Wuxi.
Micron's stock was down 6.67 percent at $21.38.