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A customer takes an image of a mannequin of SK hynix’s high-bandwidth reminiscence (HBM) know-how in the course of the 2025 World IT Present in Seoul on April 24, 2025.
Jung Yeon-je | Afp | Getty Photos
South Korea-based reminiscence maker SK Hynix introduced Tuesday it would make investments 19 trillion Korean received ($12.9 billion) to construct a brand new superior packaging plant, because it expands manufacturing to satisfy rising calls for tied to synthetic intelligence.
The brand new facility will likely be positioned within the Korean metropolis of Cheongju, constructing on the corporate’s present footprint there. Development is ready to start in April, with completion focused for the tip of 2027, the agency mentioned in a assertion.
The plant will give attention to superior packaging, which entails combining a number of reminiscence chips right into a single, high-density unit to enhance efficiency and vitality effectivity whereas lowering general dimension.
SK Hynix is among the many world’s largest producers of reminiscence chips and leads in so-called high-bandwidth reminiscence (HBM), which is utilized in synthetic intelligence processors, together with these designed by U.S. chipmaker Nvidia.
The funding comes as SK Hynix seeks to satisfy rising demand for HBM as world AI competitors intensifies, a pattern that has pushed up costs and made it profitable for reminiscence giants.
SK Hynix rival Samsung Electronics has additionally introduced plans to ramp up HBM manufacturing in current months.
In accordance with trade projections cited by SK Hynix, the HBM market is anticipated to increase at a compound annual development fee of 33% between 2025 and 2030.
Nonetheless, as producers shift to satisfy this AI-oriented demand, it has additionally led to shortages in typical reminiscence, elevating considerations about worth hikes throughout the broader electronics trade.
SK Hynix shares are up about 12% year-to-date, however had been down 2.5% in Tuesday buying and selling.
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