SK Hynix Invests $13 Billion to Build Advanced Memory Chip Plant in South Korea
South Korea-based memory maker SK Hynix announced a $13 billion investment to build a new advanced memory chip plant in Cheongju, South Korea, as it expands production to meet the rising demand for high-bandwidth memory (HBM) used in AI processors, including those by Nvidia.
Construction is set to begin in April 2026, with completion targeted for the end of 2027. The facility will focus on advanced packaging, combining multiple memory chips into a single high-density unit to enhance performance, energy efficiency, and compactness.
The investment comes amid surging global demand for HBM, causing supply shortages and price hikes. Industry projections cited by SK Hynix estimate the HBM market will grow at a 33% CAGR between 2025 and 2030.
According to TrendForce, DRAM prices, including HBM, are expected to rise 50–55% this quarter compared to Q4 2025, increasing pressure on electronics manufacturers while boosting memory producers’ earnings.
Rival Samsung has also announced plans to expand HBM production, while SK Hynix considers a potential U.S. listing after a strong 2025 performance in South Korea.
