SK Hynix to invest $13 billion in new plant amid memory chip shortage
A visitor photographs a model of SK hynix’s high-bandwidth memory (HBM) technology at the 2025 World IT Expo in Seoul on April 24, 2025.
Jung Yeon-je | Afp | Getty Images
South Korea-based memory maker SK Hynix announced Tuesday that it will invest 19 trillion Korean won ($12.9 billion) to build a new advanced packaging facility as it expands production to meet growing demands driven by artificial intelligence.
The new facility will be located in Cheongju, Korea, building on the company’s existing footprint. The company said that construction will start in April and is aimed to be completed by the end of 2027. expression.
The facility will focus on advanced packaging, which involves combining multiple memory chips into a single, high-density unit to increase performance and energy efficiency while reducing overall size.
SK Hynix is among the world’s largest memory chip makers and is a leader in so-called high-bandwidth memory (HBM), which is used in AI processors, including those designed by the US chipmaker. Nvidia.
The investment comes as SK Hynix looks to meet growing demand for HBM as global AI competition intensifies; This trend has driven up prices, making it lucrative for memory giants.
SK Hynix’s rival Samsung Electronics has also announced plans to increase HBM production in recent months.
According to industry estimates cited by SK Hynix, the HBM market is expected to grow at a compound annual growth rate of 33% between 2025 and 2030.
But as manufacturers move to meet this AI-driven demand, it has also led to shortages of traditional memory and raised concerns about price increases in the broader electronics industry.
SK Hynix shares are up about 12% year-to-date but are down 2.5% in Tuesday trading.
