Samsung and SK Hynix Counter China's CXMT with Record R&D and 40 Trillion Won Capex Push

The Quick Take

• Samsung Electronics set a Q2 R&D record of 16 trillion won, targeting HBM4E (7th-gen) AI memory leadership to counter China's CXMT production expansion
• SK Hynix expects full-year 2026 capital expenditure in the high-40-trillion-won range, accelerating its M15X fab and pre-investing in Yongin's first fab
• Both Korean memory leaders are expanding long-term supply agreements with major tech companies to lock in demand against Chinese market-share pressure

Samsung Electronics and SK Hynix are executing a coordinated investment surge to protect their dominance in the global memory semiconductor market, responding directly to China's CXMT raising large-scale public listing capital to expand DRAM production capacity. Samsung's Q2 R&D expenditure of 16 trillion won — an all-time quarterly record — reflects the urgency of advancing HBM4E seventh-generation High Bandwidth Memory technology to sustain the AI chip supply chain leadership that has generated premium margins in a rapidly expanding market segment driven by AI accelerator demand.

SK Hynix's projected 2026 capex of 40-plus trillion won positions the company to accelerate M15X fab output and complete early-stage infrastructure at the Yongin cluster, reinforcing its HBM supply capacity for AI accelerator customers. Both Korean manufacturers are expanding long-term supply agreements with hyperscaler and AI chip buyers to reduce exposure to Chinese spot-market competition — a structural hedge that trades near-term revenue flexibility for multi-year demand visibility. SK Hynix is also developing HBM5 eighth-generation memory and iHBM thermal management technology to serve next-generation Nvidia and AMD AI accelerator designs.

The primary signal to watch is Samsung's next quarterly earnings showing whether its foundry business achieves profitability alongside the HBM ramp — yield improvement on advanced nodes is the critical swing factor for the foundry turnaround thesis. For SK Hynix, the HBM5 development timeline and iHBM thermal management efficacy determines whether it can serve next-generation AI accelerator designs ahead of CXMT's capability horizon. The macro variable is US semiconductor export controls: any tightening or loosening of China chip restrictions directly affects the competitive window Samsung and SK Hynix have to consolidate their HBM technology leadership.

Synthesized from 2 sources.