SK Hynix to Invest $13 Billion in South Korea Chip Packaging Plant
Photo Credit: @SKhynix
South Korean semiconductor major SK Hynix has announced a major investment of 19 trillion won, or nearly USD 13 billion, to build an advanced chip packaging plant in South Korea as demand for AI-related memory chips continues to rise.
The company said construction of the new facility will begin in April, with completion planned by the end of next year. SK Hynix explained that rapid global growth in artificial intelligence is sharply increasing the need for high-bandwidth memory (HBM), which is essential for handling large volumes of data used in advanced AI applications.
HBM is a specialised type of DRAM that stacks memory chips vertically, helping save space and reduce power consumption while improving performance. As the main supplier of HBM chips to Nvidia, SK Hynix aims to strengthen its leadership position through this investment.
Market data shows the company led the global HBM market last year, ahead of Samsung Electronics and Micron, highlighting intense competition in the AI-driven semiconductor space.
Source: The Economic Times
