SK Hynix Announces $13B AI Memory Chip Plant in South Korea

SK Hynix, a leading global memory chip manufacturer and key supplier to Nvidia, announced plans on Wednesday to invest approximately 13 billion in a new advanced packaging facility in South Korea's Cheongju city, with construction beginning this month.

The facility, known as PT7 and located in the Heungdeok district's Technopolis Industrial Complex, will focus on producing high-bandwidth memory chips essential for artificial intelligence data centers. These chips, including the HBM architecture used in Nvidia's AI accelerators, enable faster data transfer in stacked memory layers, a critical factor in AI computing performance. The investment marks one of the company's largest single-facility projects, aimed at addressing surging global demand for AI memory products amid a prolonged supply shortage.

The announcement follows SK Hynix's recent start of mass production on advanced memory modules tailored for Nvidia's upcoming Vera Rubin AI processor, the successor to its Blackwell platform. Earlier this year, the company accelerated the opening of another memory chip plant in South Korea to keep pace with market pressures. In a regulatory filing, SK Hynix noted that the investment...