SK Hynix expands capacity with $12.9B investment in South Korea

"South Korean memory manufacturer SK Hynix is investing approximately $12.9 billion in the construction of a new factory for advanced packaging. With this investment, the company aims to expand its production capacity to capitalize on the rapidly growing demand for memory chips for artificial intelligence applications. This has been reported by Reuters and CNBC. The company is building the new factory in the city of Cheongju, where SK Hynix already has several production sites."

"The facility will focus on advanced packaging, a technique in which multiple memory chips are combined into a single compact, high-density module. This approach enables higher performance, reduces energy consumption, and reduces the physical size of the memory. Such features are particularly important for modern AI systems, which need to process large amounts of data within limited energy and space budgets."

"SK Hynix is one of the world's largest manufacturers of memory chips and has a leading position in high-bandwidth memory (HBM). This type of memory is widely used in AI processors, including those from US chip designer Nvidia. According to market data from Macquarie Equity Research, SK Hynix accounted for approximately 61 percent of the global HBM market last year, well ahead of competitors Samsung Electronics and Micron."

SK Hynix is investing approximately $12.9 billion to build a new advanced packaging factory in Cheongju, expanding production capacity for memory chips used in artificial intelligence. Construction will begin in April with completion scheduled for the end of 2027. The facility will combine multiple memory chips into compact, high-density modules to boost performance, lower energy consumption, and reduce physical size. These characteristics support modern AI systems that require high throughput within energy and space limits. SK Hynix holds a leading position in high-bandwidth memory, accounting for roughly 61 percent of the global HBM market, and seeks additional capacity amid rising demand and prices.

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