Home / Business and Economy / SK Hynix Invests $12.9B in Advanced Chip Plant
SK Hynix Invests $12.9B in Advanced Chip Plant
13 Jan
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 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.
As the principal supplier of HBM to Nvidia, SK Hynix led the HBM market in the previous year with a commanding 61% share. This investment underscores the company's commitment to maintaining its leadership position and capacity to serve the burgeoning AI sector, which is increasingly reliant on advanced memory solutions.
