Samsung and SK hynix Decline Proposed Power Prepayment for Korean Chip Expansion

Samsung Electronics and SK hynix have declined a proposed prepayment of approximately KRW25 trillion, or about $18.7 billion, for electricity costs, DigiTimes reports. The proposal was tied to South Korea’s effort to accelerate semiconductor expansion and ensure that new manufacturing sites have adequate power infrastructure. Power availability is a practical constraint on memory capacity because advanced fabs need large, reliable energy supplies long before wafers can enter volume production. The companies’ response does not change current DRAM or HBM output, but it illustrates how financing infrastructure can influence the pace of future expansion. The report does not provide a revised funding mechanism or construction timeline.