SK Hynix Drops 5% After Approving $38B in New Memory Fabs; Seagate Falls 7%, Micron Barely Dips

Shares of SK Hynix (NASDAQ:SKHY) are down 5% to $136.79 midday Friday aft the company's committee approved astir $38 cardinal to physique 2 caller representation fabs successful South Korea. The muted absorption ties backmost to the sheer standard of the superior spending, positive a determination to defer the adjacent shareholder-return update to the 3rd quarter.

The broader representation analyzable is moving unevenly. Seagate Technology (NASDAQ:STX) banal is down 7% to $797.09 contempt nary wide company-specific catalyst, portion Micron Technology (NASDAQ:MU) banal is down 2% to $866.80 and SanDisk (NASDAQ:SNDK) shares are down 3% to $1,225.15.

The Roundhill Memory ETF (CBOE:DRAM) is down 2% to $50.37, and the money is simply a utile barometer fixed however uneven the pullback has been crossed representation and retention names.

The $38 Billion Fab Approval

SK Hynix's committee green-lit 54 trillion won for 2 caller fabs: a DRAM works known arsenic Yongin Y2 astatine astir 35.2 trillion won, and a NAND flash works known arsenic Cheongju M17 astatine astir 19.1 trillion won. About two-thirds of the outlay is aimed astatine DRAM, aligning capableness with AI-driven representation demand.

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SK Hynix's absorption pulled guardant the broader Yongin clump timeline, aiming to decorativeness each 4 planned Yongin fabs by 2033 alternatively than 2045. Furthermore, SK Hynix's CEO has publically warned that 2027 could bring the astir terrible representation shortage the manufacture has ever seen, framing request arsenic a structural displacement alternatively than a cyclical bounce.

SK Hynix banal listed connected the NASDAQ speech connected July 10, and Seoul-listed shares closed down 5% up of the U.S. session. The institution besides posted grounds Q2 2026 operating nett up 557% twelvemonth implicit twelvemonth (YoY), though the study inactive missed expert estimates connected revenue.