SK Hynix Plans Multibillion Investment in Expanding Packaging Technologies in South Korea

$13 Billion SK Hynix Plans Multibillion Investment in Expanding Packaging Technologies in South Korea

2026-01-13 From Sebatsian Gerstl | Translated by AI 2 min Reading Time

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SK Hynix plans to invest 19 trillion won (approximately $13 billion) in expanding its packaging facilities in South Korea. Officially, this aims to address the current memory shortage driven by AI applications. However, the move is likely also intended to shorten supply chains and strengthen local production.

The Cheongju campus of SK Hynix. The memory manufacturer is investing the equivalent of $13 billion in expanding its high-end chip packaging facilities in South Korea. The new plants are expected to begin operations by the end of 2027.(Image: SK Hynix) — The Cheongju campus of SK Hynix. The memory manufacturer is investing the equivalent of $13 billion in expanding its high-end chip packaging facilities in South Korea. The new plants are expected to begin operations by the end of 2027.
(Image: SK Hynix)

The South Korean company SK Hynix has announced plans to invest 19 trillion won in building a state-of-the-art chip packaging facility in South Korea, according to local media reports. The expansion is intended to address the growing demand for advanced memory chips related to artificial intelligence. Construction of the new factory for advanced packaging technologies is set to begin in April and be completed by the end of next year.

Strong Focus on HBM Memory for AI Applications

The ongoing AI trend has led to a significant shortage of memory components in the global market. According to SK Hynix, the memory manufacturer is responding "proactively" to the steadily growing demand, particularly for HBM memory chips. High Bandwidth Memory requires advanced chip manufacturing and packaging technologies, as it consists of vertically stacked chip layers to save space while reducing latency and power consumption. This enables the processing of large volumes of data at high speed, such as those generated by complex AI applications.

SK Hynix is one of the leading providers of HBM memory in the global market. According to the market research institute Macquarie Equity Research, about 61% of the global market share of High Bandwidth Memory components came from the South Korean manufacturer's plants in 2025. Micron accounted for 20% of global demand, while Samsung produced 19% of the HBM memory sold. SK Hynix itself states that the HBM market is expected to grow at an average annual growth rate of 33% between 2025 and 2030.

Expansion of Domestic Chip Final Processing

The expansion of the site specifically in South Korea is likely also a response to the continued uncertainty in the chip market, particularly the ongoing threat from the U.S. regarding potential special tariffs on semiconductor products, and the ongoing trade dispute between the United States and China. At the end of 2025, a special permit from the U.S. expired, which had allowed SK Hynix and Samsung to import American chip manufacturing technologies for production at sites in China. At the same time, the South Korean government has massively expanded its subsidy program to promote domestic chip production. The decision to further shift the packaging—and thus the final assembly—of high-end memory chips to South Korea was likely also influenced by these factors.

The South Korean memory provider is not the only player in the global market focusing on expanding high-end memory products and increasing concentration on domestic semiconductor manufacturing: just last week, American rival Micron announced that it would soon begin construction of its planned megafab in the state of New York. The facility, with an investment estimated at $100 billion, is expected to be operational by 2030. (sg)

A semiconductor wafer manufactured by Micron containing memory ICs. With the help of the CHIPS and Science Act, Micron will make what it claims is the largest investment in memory chips in U.S. history. (Image:Micron)

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$13 Billion SK Hynix Plans Multibillion Investment in Expanding Packaging Technologies in South Korea