South Korea’s SK Hynix Invests $13 Billion in a New Plant Amid Rising Demand for Artificial Intelligence
South Korean company SK Hynix, one of the world's largest memory chip producers, has announced a massive investment of $13 billion to build a new advanced factory in Cheongju, South Korea.
The new factory aims to enhance the company's production of memory chips, particularly high-bandwidth memory (HBM) chips, which have become an essential component in artificial intelligence processors, including Nvidia chips.
Construction is scheduled to begin in April 2026, with project completion by the end of 2027. The factory will focus on advanced packaging technologies, which integrate multiple memory chips into a single high-density unit to improve performance, energy efficiency, and reduce overall size.
This investment comes amid a global surge in demand for HBM memory due to accelerating competition in the AI market, leading to supply shortages and rising memory chip prices.
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Based on industry estimates, SK Hynix expects the HBM market to grow at a compound annual growth rate of 33% between 2025 and 2030.
According to research firm TrendForce, DRAM memory prices—including HBM—are expected to rise by 50% to 55% in the current quarter compared to the fourth quarter of 2025, increasing pressure on electronics companies while boosting memory producers' profits.
It is worth noting that its competitor Samsung has also recently announced plans to expand HBM production. SK Hynix is currently considering listing its shares on the U.S. stock market. Following the strong performance of its stock on the Korea Exchange during 2025.
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