Construction will start next year, and production could begin in 2015. Hynix reportedly plans to spend KWT4T ($3.8B) on the fab, and to upgrade existing facilities.
Micron (MU -6.8%) investors aren't taking the news well. Shares have flown higher this year thanks to rising memory prices and expectations a newly-consolidated DRAM industry will see a favorable supply/demand balance for years to come. Micron significantly increased its exposure to mobile DRAM, which tends to carry higher margins and see less price volatility than PC DRAM, through the Elpida deal.