Memory Chips

The US administration is pressuring Apple to avoid purchasing memory chips from Chinese manufacturers amid a global shortage of essential components.

While the world's largest technology companies fight over every artificial intelligence chip, South Korean manufacturer SK Hynix is betting it all. The company is investing $720 billion to establish the world's largest network of memory factories, driven by incessant demand for advanced components essential for high-performance AI processors.

Growing demand for memory chips for artificial intelligence applications has created new opportunities for U.S. investors. Korean company SK Hynix, one of the world's top three manufacturers, has begun trading on NASDAQ, challenging Micron Technology and offering investors a more attractive valuation.

SK Hynix is investing 54 trillion Korean won ($38.1 billion) in two new memory chip plants. The move aims to address the surging demand for components essential to artificial intelligence infrastructure.

Until a month ago, SanDisk investors were seeing annual returns of around 4,000%, but the stock has since halved from its peak. We examine the pressures facing the company and whether this correction presents a buying opportunity.

Apple has asked the US administration to approve the purchase of memory chips from Chinese firms CXMT and YMT for devices sold outside the US. The initiative aims to mitigate the global chip shortage.