SK Hynix to invest $13 billion in new Cheongju packaging plant amid memory chip shortage

SK Hynix will invest 19 trillion won (about $12.9 billion) to build an advanced packaging and testing plant in Cheongju, with construction set to begin in April and completion targeted for the end of 2027. The company said the expansion aims to meet rising demand for high-bandwidth memory driven by artificial intelligence.

SK Hynix announced a 19 trillion won (about $12.9 billion) investment to build a new advanced packaging and testing plant in Cheongju. Construction is set to begin in April, and the company has targeted completion by the end of 2027. The company said the move expands production to meet rising demand driven by artificial intelligence. SK Hynix is a leading maker of high-bandwidth memory (HBM), which is used in AI processors including those designed by Nvidia. Key facts: - Investment amount: 19 trillion won (about $12.9 billion) for an advanced packaging and testing facility in Cheongju. - Timeline: construction set to begin in April, with completion targeted by the end of 2027. - Purpose: expand production of high-bandwidth memory (HBM) to meet AI-driven demand. - Market outlook: the article cites an industry projection that HBM could expand at a 33% compound annual growth rate between 2025 and 2030. - Supply impact: the shift toward HBM production has been reported as straining supplies of conventional memory chips. - Industry response: the article notes that rival Samsung Electronics has also announced plans to increase HBM production. Summary: The investment is presented as a step to boost HBM output amid rising AI demand and related market shifts. The next scheduled milestone is the start of construction in April, with the plant expected to be completed by the end of 2027. The article reports concerns about pressure on conventional memory supplies and describes other firms taking steps to expand capacity.