SK Hynix Bets $13 Billion To Lock In AI Memory Dominance

Core Insights - The competition in the AI chip market is intensifying, with major players like SK Hynix, Samsung, Taiwan Semiconductor Manufacturing Company, and Micron Technology increasing investments to meet the rising demand for high-bandwidth memory (HBM) and advanced chips for AI applications [1][4]. Investment and Expansion - SK Hynix plans to invest 19 trillion won (approximately $13 billion) to build a new advanced semiconductor packaging and testing facility, P&T7, in the Cheongju Techno Polis industrial complex to enhance its position in the AI chip supply chain [2]. - Construction of the new facility is set to begin in April, with completion expected by 2027 and full operations anticipated in 2028 [3]. Market Dynamics - The demand for HBM is accelerating due to the requirements of AI and generative AI workloads, which necessitate faster and more power-efficient memory solutions [5]. - SK Hynix currently leads the global HBM market with a 53% share, followed by Samsung at 35% and Micron at 11%, as of the third quarter of 2025 [6]. - Industry projections indicate that the global HBM market is expected to grow at a compound annual growth rate of 33% from 2025 to 2030 [6]. Pricing Trends - Average DRAM prices, including HBM, are projected to rise by 50% to 55% in the current quarter compared to the fourth quarter of 2025, driven by increased AI demand and tightening conventional memory supply [7].