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A customer takes an image of a mannequin of SK hynix’s high-bandwidth reminiscence (HBM) expertise throughout the 2025 World IT Present in Seoul on April 24, 2025.
Jung Yeon-je | Afp | Getty Photos
South Korea-based reminiscence maker SK Hynix introduced Tuesday it’s going to make investments 19 trillion Korean gained ($12.9 billion) to construct a brand new superior packaging plant, because it expands manufacturing to satisfy rising calls for tied to synthetic intelligence.
The brand new facility shall be positioned within the Korean metropolis of Cheongju, constructing on the corporate’s current footprint there. Development is ready to start in April, with completion focused for the tip of 2027, the agency mentioned in a assertion.
The plant will deal with superior packaging, which includes combining a number of reminiscence chips right into a single, high-density unit to enhance efficiency and vitality effectivity whereas decreasing total dimension.
SK Hynix is among the many world’s largest producers of reminiscence chips and leads in so-called high-bandwidth reminiscence (HBM), which is utilized in synthetic intelligence processors, together with these designed by U.S. chipmaker Nvidia.
The funding comes as SK Hynix seeks to satisfy rising demand for HBM as world AI competitors intensifies, a development that has pushed up costs and made it profitable for reminiscence giants.
SK Hynix rival Samsung Electronics has additionally introduced plans to ramp up HBM manufacturing in current months.
Based on trade projections cited by SK Hynix, the HBM market is predicted to develop at a compound annual development price of 33% between 2025 and 2030.
Nonetheless, the method of manufacturing HBM reminiscence is way more demanding than that for reminiscence utilized in most shopper electronics. As chipmakers shift to satisfy AI-driven demand, provides of standard reminiscence have tightened, contributing to cost hikes and elevating issues about greater prices throughout the broader electronics trade.
TrendForce, a Taipei-based tech analysis agency, mentioned final week that it expects common dynamic random entry reminiscence costs, together with HBM, to rise by 50% to 55% this quarter in contrast with the fourth quarter of 2025.
Dynamic Random Entry Reminiscence, or DRAM, usually refers back to the major, risky reminiscence present in most computer systems for non permanent knowledge storage.
Whereas greater reminiscence costs have created challenges for electronics producers, they’ve boosted earnings for reminiscence producers. Samsung mentioned final week it expects working revenue for the December quarter to almost triple from the identical interval final yr.
In the meantime, SK Hynix is weighing a possible U.S. itemizing following a blockbuster 2025 for its shares in South Korea. The inventory is up about 12% because the begin of this yr, although it fell roughly 2.5% in Tuesday buying and selling.
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