South Korea’s SK Hynix will invest 19 trillion won ($12.85 billion) in a new memory packaging facility, the world’s third-biggest semiconductor maker by sales announced on Tuesday.
The development comes as surging artificial intelligence demand reshapes the global chips landscape and prompts the industry’s biggest players to accelerate capital expenditure at scale.
The investment is aimed squarely at meeting a rapid rise in global demand for memory chips that process AI data, a segment where the South Korean chipmaker has emerged as a dominant.
“With the new facility, SK Hynix will solidify its position as a global leader in high-value added memory packaging,” the company said.
Capacity and technology gains
The new plant will lift SK Hynix’s total production capacity by approximately 30%.
This is significant expansion that reflects both the company’s confidence in sustained AI-driven demand and the growing strategic importance of advanced packaging in the semiconductor value chain.
Beyond raw capacity, the facility will allow SK Hynix to upgrade its packaging technology to handle increasingly smaller and more complex memory chips.
This is a critical requirement as AI accelerators demand ever-tighter integration between logic and memory components.
High-bandwidth memory, or HBM, has become the defining product in this race, and SK Hynix has so far maintained a decisive lead over rivals Samsung Electronics and Micron Technology in supplying the format to customers including Nvidia.
SK Hynix has invested a cumulative 70 trillion won in its memory chip business to date.
Semiconductors account for around 70% of its revenue, with the remainder derived from NAND flash memory packaging.
The segment is facing greater pricing pressure but one that the company hopes to stabilise through technology differentiation.
Markets respond
Investors welcomed the announcement with measured enthusiasm.
Shares in SK Hynix rose 1.5% on the day, outperforming a 0.6% gain in the broader South Korean market.
Parent company SK Group climbed 2.1%, reflecting wider market confidence in the conglomerate’s AI-linked growth strategy and its ability to translate capital commitments into long-term earnings power.
The investment underscores a broader industry pivot, as chipmakers across the globe race to scale up advanced packaging infrastructure capable of supporting the next generation of AI training and inference workloads.
With hyperscalers such as Microsoft, Google, and Amazon committing to record data centre spending through 2026 and beyond, demand for HBM and advanced memory packaging is widely expected to remain elevated.
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