SK Hynix to Invest $12.9 Billion in Advanced Chip Packaging Facility in South Korea
SK Hynix Inc. plans to invest 19 trillion won ($12.9 billion) to expand its chip packaging capacity in Cheongju, South Korea, to meet the rising demand for high-bandwidth memory (HBM) driven by AI data center growth. The facility is expected to break ground in April and be completed by the end of 2027, addressing critical packaging bottlenecks amid tightening global memory supply. The company projects a 33% annual growth in the HBM market from 2025 to 2030, highlighting the need for proactive supply planning in light of persistent shortages.
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SK Hynix Inc. is set to invest 19 trillion won ($12.9 billion) to enhance its chip packaging capacity in response to increasing demand for high-bandwidth memory (HBM) driven by AI data center construction. Groundbreaking is scheduled for April in Cheongju, South Korea, with completion expected by the end of 2027.
The new facility will address packaging bottlenecks critical for AI workloads. Global memory supply is tightening, raising concerns about AI investment limitations as the demand for advanced memory chips like HBM outpaces expectations.
The imbalance between supply and demand, compounded by long qualification cycles and production challenges, may lead to persistent shortages. SK Hynix anticipates HBM market growth of 33% annually from 2025 to 2030, emphasizing the need for proactive supply planning.
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