TLDR

SK Hynix will invest $12.9 billion to build a new advanced packaging plant in Cheongju, South Korea, with construction starting in April and completion targeted by end of 2027
The facility will focus on advanced packaging technology that combines multiple memory chips into high-density units for improved performance and energy efficiency
The HBM market is projected to grow at 33% annually between 2025 and 2030 as AI demand intensifies
DRAM prices are expected to rise 50-55% this quarter compared to Q4 2025 due to tightening supplies as production shifts toward AI-focused memory
SK Hynix holds 61% of the HBM market share, leading competitors Samsung Electronics (19%) and Micron (20%)

SK Hynix announced Tuesday a $12.9 billion investment to construct an advanced packaging facility in Cheongju, South Korea. The memory chip maker plans to break ground in April with completion targeted by the end of 2027.

SK Hynix plans to spend $12.9 billion building a new advanced chip packaging facility, initiating a big expansion in anticipation of AI demand https://t.co/j5cjad68rA

— Bloomberg (@business) January 13, 2026

The new plant will specialize in advanced packaging technology. This process combines multiple memory chips into single, high-density units to boost performance and energy efficiency while reducing physical size.

The investment comes as global AI competition drives up demand for specialized memory chips. SK Hynix leads the high-bandwidth memory market, supplying chips used in AI processors including those made by Nvidia.

The company currently holds 61% of the HBM market. Samsung Electronics controls 19% while Micron holds 20%, according to Macquarie Equity Research data from last year.

Industry projections cited by SK Hynix forecast the HBM market will expand at a 33% compound annual growth rate from 2025 to 2030. This rapid growth reflects the increasing computational demands of AI applications.

Supply Shift Creates Price Pressure

The production of HBM memory requires more complex manufacturing processes than memory used in consumer electronics. As chipmakers redirect resources toward AI-driven demand, conventional memory supplies have tightened.

TrendForce projects average DRAM prices, including HBM, will rise 50-55% this quarter compared to Q4 2025. The price increases stem from supply constraints as manufacturers prioritize AI-focused memory production.

Higher memory costs present challenges for electronics manufacturers but boost earnings for memory producers. Samsung reported last week that operating profit for the December quarter is expected to nearly triple year-over-year.

Market Performance and Expansion Plans

SK Hynix stock has gained approximately 12% since the start of this year. The shares fell roughly 2.5% in Tuesday trading following the announcement.

The company is considering a potential U.S. listing after strong performance in 2025. The Cheongju facility will expand SK Hynix’s existing production footprint in the city.

Samsung Electronics has also announced plans to increase HBM production in recent months. The moves by both South Korean chipmakers reflect the industry’s race to capture growing AI-related demand.

Construction at the Cheongju site is scheduled to begin in April. The facility is targeted for completion by the end of 2027.

The post SK Hynix (SSNHZ) Stock: Company Commits $12.9 Billion to New Memory Chip Plant appeared first on CoinCentral.

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Filed under: News - @ January 13, 2026 9:27 am