A visitor takes a photo of a model of SK Hynix’s high bandwidth memory (HBM) technology at the 2025 World IT Show in Seoul, April 24, 2025.
Jung Young Jae | AFP | Getty Images
South Korea-based memory maker SK Hynix said on Tuesday it will invest 19 trillion Korean won ($12.9 billion) in building a new advanced packaging factory to expand production to meet growing demand related to artificial intelligence.
The new facility will be located in Cheongju, South Korea, and will further develop the company’s existing footprint. Construction will begin in April and is targeted for completion by the end of 2027, the company said in a statement.
The factory will focus on advanced packaging that combines multiple memory chips into a single high-density unit to improve performance and energy efficiency while reducing overall size.
SK Hynix is one of the world’s largest memory chip manufacturers and a leader in so-called high-bandwidth memory (HBM), used in artificial intelligence processors, including those designed by the U.S. chipmaker. Nvidia.
The investment comes as SK Hynix seeks to meet rising demand for HBM as global AI competition intensifies, a trend that is driving up prices and benefiting the memory giant.
SK Hynix’s rival Samsung Electronics has also announced plans to expand HBM production in recent months.
According to industry forecasts cited by SK Hynix, the HBM market is expected to expand at a compound annual growth rate of 33% from 2025 to 2030.
But as manufacturers shift to meet this AI-driven demand, it’s also leading to a shortage of traditional memory, raising concerns about rising prices across the electronics industry.
SK Hynix stock has risen about 12% since the beginning of the year, but fell 2.5% in Tuesday trading.
