Key Points
- SK Hynix plans to invest about $12.9 billion in a state-of-the-art chip packaging plant in Cheongju, South Korea.
- The facility aims to boost capacity for high-bandwidth memory chips used in AI systems amid rising global demand.
- Construction will begin in April 2026 with completion targeted by the end of 2027.
South Korean memory chip maker SK Hynix announced plans to invest 19 trillion won (about $12.9 billion) in a cutting-edge chip packaging facility to meet surging global demand for AI-oriented memory products.
The facility is designed to enhance production capacity for high-bandwidth memory (HBM) chips, which are crucial components in data centers and large-scale AI systems that require high-speed data handling. Construction of the new plant in Cheongju — a key semiconductor hub — is scheduled to begin in April 2026, with the company targeting completion by the end of 2027.
The advanced packaging plant aims to help SK Hynix stay ahead in the fiercely competitive AI memory market and improve the efficiency and performance of its products.
Industry research shows that HBM chips are increasingly important as AI workloads grow more complex, pushing demand for memory technologies that can process large amounts of data with lower power consumption.
SK Hynix has been a dominant player in the HBM segment, supplying a significant share of high-bandwidth memory used by major AI hardware customers. The investment underscores the company’s strategy of expanding its manufacturing footprint and technological edge to support the evolving needs of AI systems and data-intensive applications.
Analysts say the plant could reduce supply bottlenecks and give SK Hynix an edge over rivals as AI adoption accelerates worldwide.
The commitment also reflects broader trends in the semiconductor industry, where memory makers are ramping up capacity and capabilities to capture growth from artificial intelligence and related technologies.
If completed on schedule, the new packaging facility will significantly boost South Korea’s position in the global semiconductor supply chain and reinforce SK Hynix’s role as a key supplier of advanced memory technologies. Construction is set to begin in April 2026 and finish by the end of 2027.
