South Korea based memory chip maker SK Hynix on Tuesday said it will invest 19 trillion Korean won, or about 12.9 billion dollars, to build a new advanced packaging plant as it expands capacity to meet rising demand linked to artificial intelligence.
The company said the new facility will be set up in the city of Cheongju, where it already has a strong manufacturing presence. Construction is scheduled to begin in April, with completion expected by the end of 2027.
The plant will focus on advanced packaging technology. This process allows multiple memory chips to be combined into a single high density unit. It improves performance, reduces power use and helps make devices smaller.
SK Hynix is one of the world’s largest memory chip producers and a global leader in high bandwidth memory or HBM. These chips are widely used in AI processors, including those designed by a major United States chipmaker.
The investment comes at a time when demand for HBM is rising sharply as global competition in artificial intelligence intensifies. This trend has also pushed up prices, making the segment highly profitable for major memory makers. Rival Samsung Electronics has also announced plans to increase its HBM output.
Industry estimates shared by SK Hynix suggest that the HBM market will grow at a compound annual rate of 33 percent between 2025 and 2030.
However, producing HBM is more complex than making memory used in most consumer electronics. As companies shift focus to AI related chips, supplies of traditional memory have tightened. This has contributed to higher prices and raised concerns about rising costs across the electronics industry.
A technology research firm recently said average dynamic random access memory prices, including HBM, could rise by 50 to 55 percent this quarter compared with the previous one.
While higher prices pose challenges for device makers, they have helped boost earnings for memory producers. Samsung recently said its operating profit for the December quarter is expected to nearly triple year on year.
Meanwhile, SK Hynix is considering a possible United States stock listing after a strong year for its shares at home. Its stock has risen about 12 percent this year, although it dipped around 2.5 percent on Tuesday.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
