SK Hynix to invest nearly $13 billion in South Korea chip packaging plant

SK Hynix will invest 19 trillion won (about $12.9 billion) to build an advanced chip packaging plant in South Korea, with construction set to begin in April and completion targeted by the end of next year.

SK Hynix said it will invest 19 trillion won (about $12.9 billion) to build an advanced chip packaging plant in South Korea. The company announced construction is scheduled to begin in April and the factory is targeted for completion by the end of next year. The firm described the move as a response to rising demand for memory chips tied to artificial intelligence. High-bandwidth memory (HBM) technology is identified in the announcement as a focus for the new facility. Key facts: - The announced investment totals 19 trillion won, reported as roughly $12.9 billion. - Construction is planned to begin in April, with completion targeted by the end of next year. - The investment is described as intended to meet rising AI-related demand for advanced memory, including high-bandwidth memory (HBM). - HBM is a DRAM standard that stacks chips vertically to save space and reduce power use, which helps process large volumes of data for complex AI applications. - The article mentions Macquarie Equity Research data showing SK Hynix held about a 61% share of the HBM market last year, with Samsung at 19% and Micron at 20%. Summary: The announcement indicates an expansion of domestic chip packaging capacity amid growing AI-driven demand for memory. Construction timing is set, and the company highlighted HBM as a key technology for the new plant. Further operational details, including specific production capacity and staffing, were not reported. Undetermined at this time.