SK Hynix announced plans to invest approximately $12.85 billion in a new semiconductor facility in South Korea, aiming to meet rapidly growing global demand for artificial intelligence (AI) memory chips.
The company said construction of the new plant will begin this month, marking a major step in expanding its production capacity, News.Az reports, citing Reuters.
The facility will specialize in advanced packaging, a critical process used to produce high-performance AI memory products such as high-bandwidth memory (HBM) chips.
As a key supplier to Nvidia, SK Hynix has been ramping up capacity to support the surge in AI-driven data center demand.
The investment reflects intensifying competition among global chipmakers to capitalize on the AI boom. Demand for advanced memory solutions has risen sharply as companies expand infrastructure for machine learning and data processing.
Earlier this year, SK Hynix accelerated its expansion plans, including bringing forward the launch of another memory chip plant in South Korea.
The new facility underscores SK Hynix’s strategy to strengthen its position in the global semiconductor market, particularly in the fast-growing AI segment.
With AI technologies driving unprecedented demand for high-performance computing, chipmakers are racing to scale production and secure their role in the next wave of innovation.
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