South Korean chip maker SK Hynix is investing 19 trillion won ($13bn) to build a new facility in the country.
The company said in a statement that it intends to build a chip packaging and testing plant in Cheongju, south of Seoul. Construction of the facility will begin in April and is expected to be completed by the end of 2027.
SK Hynix is the world’s largest maker of high-bandwidth memory (HBM) chips for U.S. Nvidia Corp.’s AI accelerators.
The company is “acting proactively because it is responding to the growing demand for HBM chips” amid increasing demand for AI memory, SK Hynix said in a statement. The company forecasts the HBM chip market to grow at an average annual rate of 33 per cent between 2025 and 2030.
SK Hynix shares fell 1.5 per cent on Tuesday, having risen 3.8 times in the past 12 months.