South Korean chipmaker SK Hynix plans a massive investment in memory chips and packaging facilities to meet rising AI-driven demand.
South Korean chipmaker SK Hynix will invest 100 trillion won ($64 billion) to build new NAND memory chips and advanced packaging facilities, as it builds up capacity to meet growing demand from the artificial intelligence boom.
According to Reuters, the investment is part of a broader 2.1 quadrillion won ($1.35 trillion) semiconductor expansion plan jointly outlined by SK Hynix and Samsung Electronics earlier this week.
The company said it will spend 80 trillion won ($51 billion) on a new NAND memory fabrication plant in Cheongju by 2029 and another 20 trillion won ($13 billion) on a chip packaging facility expected to be completed by late 2027.
South Korea is targeting a sharp rise in semiconductor output, with the government aiming to double the country’s memory chip production capacity within five years.
SK Hynix CEO Kwak Noh-jung expressed confidence in future NAND demand despite wider market concerns over AI-related overspending.
“While demand for NAND has been increasing and is expected to continue growing in the future, NAND supply is constrained,” he said.
However, investor sentiment remained cautious, with SK Hynix shares falling 7.1% amid a wider global chip-sector selloff.
