On Tuesday, the announcement emphasized the intensifying competition within the AI memory sector and reflects industry efforts to alleviate supply constraints threatening technological growth.
SK Hynix
already operates several production sites in Cheongju, South Korea, where the new factory is set to break ground in April. The completion of the project is anticipated by the end of 2027, with design and construction phases commencing soon, as stated by company representatives.
This schedule aims to coincide with the forecasted rise in demand for high-performance memory technologies, which are essential for future computer systems.
The investment by SK Hynix comes amidst a global shortage of memory chips, particularly high-bandwidth memory (HBM). This type of Dynamic Random Access Memory (DRAM) is designed for rapid data processing in data centers and AI systems.
HBM chips are crucial for advanced AI accelerators because they vertically stack memory cells, enhancing speed while conserving power and space.
According to industry projections cited by SK Hynix, the HBM market is expected to grow at a compound annual growth rate of 33% from 2025 to 2030.
Following a strong performance for its shares in South Korea in 2025, SK Hynix is contemplating a potential offering in the US. Despite a 2.5% drop on Tuesday, the stock has risen nearly 12% since the start of this year.
Moreover, SK Hynix held over 61% of the global HBM market last year, significantly outpacing competitors like Samsung Electronics and Micron, which accounted for approximately 19% and 20%, respectively. SK Hynix’s HBM products remain a significant supplier to Nvidia, a major AI chip manufacturer.
Taipei-based research firm TrendForce anticipated that average dynamic random access memory prices, including HBM, would rise by 50% to 55% in this quarter compared to the fourth quarter of 2025.
The process of integrating raw semiconductor dies into finished modules, or packaging, has become a bottleneck in the semiconductor supply chain, as noted by industry experts. Thus, enhancing advanced packaging capacity is essential despite the hefty investment.
In its announcement, SK Hynix underscored the strategic importance of the new facility in maintaining leadership in AI memory technologies and ensuring supply stability.
This investment is also anticipated to bolster South Korea’s broader semiconductor ecosystem by enhancing downstream capabilities in the region and creating job opportunities.
