SK Hynix memory maker plans $13 Billion AI packaging plant

SK Hynix said it will invest 19 trillion won, about $12.9 billion, to build an advanced chip packaging complex aimed at fast-growing artificial intelligence demand.

The South Korean memory maker plans to start construction in April in the southern city of Cheongju and finish the facility by the end of 2027, according to a statement on its website.

SK Hynix leads the global market for high-bandwidth memory, known as HBM, which feeds data at very high speeds to AI accelerators used in data centers, including products supplied to Nvidia.

HBM stacks multiple memory chips together and places them close to processors, which cuts power use and boosts performance compared with older memory designs.

The Cheongju complex will focus on advanced packaging, a final manufacturing step that connects memory to processors and prepares chips for shipment to customers.

The investment comes as global memory supply tightens and risks slowing spending on AI infrastructure as companies race to build new data centers.

Demand for HBM and other advanced memory chips has jumped faster than expected as data center construction accelerates worldwide.

Memory, once treated as a basic commodity part, now limits how quickly operators can install new AI accelerators, because packaging is complex and factories run near capacity.

Those constraints keep supplies tight and prices firm, giving memory makers more bargaining power with customers than in past cycles.

The shift has pushed major producers, including Samsung Electronics and Micron Technology, to reconsider expansion plans and speed up investment in advanced packaging lines.

SK Hynix said it expects the HBM market to grow at an average annual rate of 33% from 2025 through 2030.

The company said responding early to rising HBM demand has become increasingly important as customers place more orders.

Chey Tae-won, chairman of parent SK Group, warned in November that supply faces a bottleneck, citing growing requests from many companies during a keynote speech at the SK AI Summit in Seoul.