What is SK Hynix building in South Korea?

SK Hynix is building an advanced chip packaging plant in South Korea.

Why is SK Hynix investing 19 trillion won?

The investment is to meet the rising demand for memory chips driven by artificial intelligence.

What are HBM chips and why are they important for AI?

HBM chips stack memory vertically to process large AI data volumes efficiently and with less power.

Home / Business and Economy / SK Hynix Invests $12.9B in Advanced Chip Plant

SK Hynix Invests $12.9B in Advanced Chip Plant

13 Jan

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Summary

SK Hynix commits 19 trillion won for a new advanced chip packaging facility.
Construction begins April, targeting completion by end of next year.
Investment driven by escalating demand for AI-specific high-bandwidth memory chips.

SK Hynix Invests $12.9B in Advanced Chip Plant

SK Hynix has announced a substantial investment of 19 trillion won ($12.90 billion) to establish a cutting-edge chip packaging plant within South Korea. This strategic move aims to address the rapidly growing demand for memory chips essential for artificial intelligence applications. The construction phase for this new facility is scheduled to begin in April and is projected to be completed by the close of next year.

The company cited the intensifying global competition in artificial intelligence as the primary driver behind the sharp increase in demand for AI-focused memory. SK Hynix highlighted the critical need to proactively meet the escalating requirements for high-bandwidth memory (HBM) chips, a specialized DRAM standard known for its vertical stacking of chips to enhance efficiency and reduce power consumption for complex AI data processing.