SK Hynix Plans $13 Billion Facility for AI Memory Chip Packaging

SK Hynix Announces $12.9 Billion Investment in Advanced Chip Packaging Facility

SK Hynix Inc. has revealed plans to invest 19 trillion won (approximately $12.9 billion) in the construction of a state-of-the-art chip packaging plant, aiming to address the rapidly increasing demand driven by artificial intelligence technologies.

The South Korean semiconductor giant will break ground on the new facility in Cheongju this April, targeting completion by the end of 2027. As the top supplier of high-bandwidth memory (HBM) for Nvidia’s AI accelerators, SK Hynix is positioning itself at the forefront of the AI hardware boom.

This significant investment comes at a time when the global memory chip market is tightening, threatening to slow down AI infrastructure growth. The need for advanced memory solutions like HBM has outpaced earlier forecasts, fueled by the rapid expansion of data centers worldwide.

Memory chips, once considered basic commodities, have now become a critical factor limiting the deployment speed of new AI accelerators in data centers. Although manufacturers are striving to ramp up production of sophisticated memory products, challenges such as lengthy qualification processes, intricate packaging requirements, and restricted manufacturing capacity suggest that supply shortages may persist. This scenario is likely to maintain strong pricing and provide memory suppliers with increased bargaining power.

These market dynamics are pushing major players—including SK Hynix, Samsung Electronics, and Micron Technology—to reevaluate their investment strategies and accelerate the development of advanced packaging capabilities.

SK Hynix anticipates that the HBM sector will experience an average annual growth rate of 33% between 2025 and 2030.

“It is becoming ever more crucial to proactively address the rising demand for HBM,” the company emphasized in its announcement.

Chey Tae-won, chairman of SK Group (SK Hynix’s parent company), highlighted the issue of constrained supply during a keynote at the SK AI Summit in Seoul last November. “We are now in a period where supply bottlenecks are a reality,” Chey remarked. “We continue to receive requests for memory chips from numerous companies and are working diligently to find ways to meet all these needs.”

Reporting assistance by Shinhye Kang.

©2026 Bloomberg L.P.