SK Hynix to invest $13 billion in new plant amid memory chip shortage

Core Viewpoint - SK Hynix is investing 19 trillion Korean won ($12.9 billion) to build a new advanced packaging plant to meet rising demand driven by the artificial intelligence boom [1][2]. Company Summary - The new fabrication facility will be located in Cheongju, South Korea, with construction starting in April and completion targeted for the end of 2027 [2]. - SK Hynix is a leading global producer of memory chips and is at the forefront of high-bandwidth memory (HBM) technology, which is essential for AI processors, including those from Nvidia [2][3]. Industry Summary - The HBM market is projected to grow at a compound annual growth rate of 33% from 2025 to 2030, driven by increasing global AI competition [3]. - The shift towards AI demand has strained supplies of conventional memory chips, raising concerns about potential shortages affecting the broader electronics industry [3]. - In response to rising demand, memory chip manufacturers, including SK Hynix and Samsung Electronics, are expanding production capacity [4].