SK Hynix to invest $13B in South Korea AI chip plant
South Korea’s SK Hynix announced on Tuesday that it will invest 19 trillion won ($12.9 billion) to build an advanced chip packaging plant in South Korea, aimed at meeting rising memory chip demand driven by artificial intelligence.
Construction of the new facility is scheduled to begin in April, with completion targeted by the end of next year, the company said in a statement, News.Az reports, citing Reuters.
SK Hynix cited accelerating global competition in AI as a key factor behind the surge in demand for AI-focused memory, emphasizing the need to respond proactively to the growing market for high-bandwidth memory (HBM) chips.
HBM, a type of dynamic random-access memory (DRAM) first produced in 2013, stacks chips vertically to save space and reduce power consumption, allowing faster processing of large volumes of data generated by complex AI applications.
SK Hynix, the main HBM supplier to Nvidia, led the HBM market last year with a 61% share, followed by Samsung Electronics at 19% and Micron at 20%, according to data from Macquarie Equity Research.
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