SK Hynix plans $13bn chip plant to tackle global memory shortage

SK Hynix is gearing up to invest about KRW 19 trillion (roughly $12.9 billion) to build a new advanced chip packaging plant as it expands capacity to meet soaring global demand for memory used in artificial intelligence (AI) systems.

The South Korea–based memory chip maker said the new facility will be located in Cheongju, adding to its existing manufacturing footprint in the region. 

Notably, construction is scheduled to begin in April, with completion targeted for the end of 2027.

The plant will focus on advanced packaging technologies, which combine multiple memory chips into a single, high-density unit. 

This approach improves performance and energy efficiency while reducing overall size—features that are increasingly critical for AI data centres and high-performance computing.

For the unversed, SK Hynix is one of the world’s largest memory chip producers and a market leader in high-bandwidth memory (HBM). 

HBM is a key component in AI processors, including those designed by Nvidia, and demand for the technology has surged as companies race to deploy more powerful AI systems.

The investment comes as global competition in AI intensifies, pushing up prices for advanced memory and making HBM a highly profitable segment for chipmakers. 

SK Hynix has been moving aggressively to secure its leadership position as customers seek reliable supplies of cutting-edge memory.

Rival Samsung has also announced plans in recent months to expand its own HBM production, underscoring the strategic importance of the technology.