Prime Highlights:
- SK Hynix is investing $13 billion in a new advanced memory chip plant in Cheongju to meet rising global demand.
- The company aims to strengthen its position as a global leader in memory technology and take advantage of high-performance memory growth.
Key Facts:
- Construction of the new plant will begin in April and is expected to finish by the end of 2027.
- Industry projections show the high-bandwidth memory (HBM) market could grow at an average rate of 33% per year between 2025 and 2030.
Background:
South Korea-based memory maker SK Hynix has announced plans to invest 19 trillion won (approximately $12.9 billion) in a new advanced packaging facility in Cheongju, the company said Tuesday. The investment will increase SK Hynix’s production of high-bandwidth memory (HBM), an important type of memory chip.
The new plant, next to SK Hynix’s existing Cheongju facilities, will start construction in April and is expected to be finished by the end of 2027. It will use advanced packaging, which puts several memory chips together in one smaller, more efficient unit. This makes the chips faster, uses less energy, and takes up less space.
HBM memory is widely used in AI processors, including those designed by U.S. chipmaker Nvidia. Demand for high-bandwidth memory (HBM) has increased, prompting SK Hynix to expand production. Industry projections cited by the company indicate that the HBM market is expected to grow at an average rate of 33% per year between 2025 and 2030.
The rising demand for advanced memory has reduced supplies of regular memory, leading to higher prices across the electronics industry. Research firm TrendForce recently projected that average prices for dynamic random access memory (DRAM), including HBM, could increase by 50% to 55% in the first quarter of 2026 compared with the previous quarter.
Higher memory prices make things harder for electronics makers, but help memory companies earn more.
With the new plant, SK Hynix wants to become a stronger global leader and meet the growing demand for high-performance memory.
