The South Korean company SK Hynix plans to invest approximately $13 billion in the construction of a facility dedicated to assembling advanced memory chips. This initiative aims to enhance its production capabilities in response to the growing demand linked to artificial intelligence technologies.
In a statement released on Tuesday, the company announced that the new facility will be established in the city of Chungju, expanding its existing operations in the area. Construction is set to commence in April, with the aim of completing the project by the end of 2027. The company emphasized the increasing necessity to proactively address the rapidly rising demand for high bandwidth memory.
This factory will focus on advanced packaging techniques, which involve integrating multiple memory chips into a single high-density unit. This approach is expected to enhance performance and energy efficiency while reducing the overall size, according to reports.
SK Hynix currently holds a leading position in the high bandwidth memory (HBM) market, which is critical for AI processors developed by major companies like NVIDIA. The firm anticipates the chip market to grow at a compound annual growth rate of 33% from 2025 to 2030.
In November, Chey Tae-won, Chairman of SK Group, SK Hynix’s parent company, warned about supply constraints. During the SK AI Summit in Seoul, Chey remarked, “We have entered an era where supply faces a bottleneck. We are receiving supply requests for memory chips from numerous companies and are considering how to meet all these demands.”