SK Hynix Invests $12.9 Billion in AI Memory Chip Plant

South Korea's SK Hynix announced Tuesday a $12.9 billion investment to construct a new advanced chip packaging facility in Cheongju, aimed at boosting production of high-bandwidth memory chips essential for artificial intelligence applications. The plant, construction of which is set to begin in April 2026 and complete by the end of 2027, will specialize in stacking multiple memory dies into compact, high-density modules to enhance performance and energy efficiency.

The initiative addresses surging global demand for AI-focused memory amid intensifying competition in the sector. SK Hynix, a leading semiconductor manufacturer based in Icheon, South Korea, stated that the facility will play a central role in supplying high-bandwidth memory, or HBM, a type of dynamic random-access memory first introduced in 2013. HBM enables rapid data transfer and low latency, critical for training and running large AI models in data centers. As AI systems require greater computing power, the company is expanding capacity to meet needs from major customers, including Nvidia, the primary supplier of AI accelerators.

Cheongju already serves as a key manufacturing hub for SK Hynix, hosting the M15...