Asian firms are investing $136 billion in building chip manufacturing plants, accelerating the pace of AI industry development.

Capital expenditures in the AI industry are growing not only among cloud giants but also among equipment suppliers

In a context of rapid growth in demand for artificial intelligence, companies involved in developing specialized chips and infrastructure for their operation plan to significantly increase capital spending. According to TrendForce and Nikkei, Asian chip manufacturers will jointly raise their investments by 25 % in 2024 compared with the previous year—amounting to $136 billion.

Major players
Company Planned Capital Expenditure (2024) Change vs. 2023
TSMC $52–56 bn +37 % (record growth)
SMIC $8 bn ≈0 % (steady at annual revenue level)
Samsung Electronics $28 bn +3.7 %
SK hynix $24.5 bn +24 %

- TSMC will allocate 70–80 % of funds to expanding manufacturing capacity for the most advanced chips (periodic 3‑4 nm and below). The remaining portion will go to mature technologies and advanced packaging.

- SMIC maintains investment levels equal to its annual revenue. It plans no growth in capital expenditures compared with the previous year.

- Samsung and SK hynix are boosting memory production, especially HBM (High Bandwidth Memory). Samsung will increase DRAM output by 20 %, focusing on 10‑nm chips for HBM4 assembly in Pyeongtaek. SK hynix plans to double total HBM production, with a monthly output of 170,000–200,000 chips expected by the end of Q1 next year.

Smaller players and new opportunities
- Sandisk & Kioxia together invest $4.5 bn, 40 % higher than last year. They see rising NAND‑memory prices as an opportunity to strengthen market positions.

- Winbond Electronics plans to increase capital spending eightfold compared with the previous year. In Q1, the company expects product price increases of more than 30 %, confirming the feasibility of expanding production.

- Nanya Technology, the fifth-largest DRAM manufacturer, intends to double its capital expenditures this year. However, the first new plant will only appear in the second half of 2028.

Conclusion
The chip and memory market is experiencing a significant influx of investment that extends beyond cloud giants. Major players (TSMC, Samsung, SK hynix) are investing tens of billions of dollars to expand cutting‑edge technologies, while smaller manufacturers seek to capitalize on price growth and increase their shares in the NAND and DRAM markets. Over the next few years, substantial capacity expansion across Asia is expected, reinforcing AI’s position as a global driver of technological progress.