Key points
- New advanced chip packaging plant
- Investment driven by AI demand
- Focus on high-bandwidth memory chips
SEOUL, South Korea: South Korean chip giant SK hynix said on Tuesday it would spend 19 trillion won ($12.9 billion) building an advanced chip packaging plant as the firm rides a global AI boom.
SK hynix is one of the world’s leading memory chip makers, manufacturing chips essential for artificial intelligence products and the data centres that the fast-evolving industry relies on, reports AFP.
“As global competition in AI accelerates, demand for memory used in AI is surging worldwide,” the company said.
“SK hynix has decided to make a new investment in an advanced packaging fab,” it said.
“The importance of pre-emptively responding to rising HBM (high-bandwidth memory) demand is critical,” it added.
US giant
The company is a supplier to the US giant Nvidia and remains one of the biggest manufacturers of the product.
Last month, SK hynix said it was considering a US stock market listing using treasury shares as part of efforts to boost shareholder value.
The company’s shares have traded at record highs in recent days on hopes that global demand for semiconductors will surge on a boom in artificial intelligence.
South Korea’s government has said it will triple spending on artificial intelligence this year as it hopes to propel the country into the ranks of the world’s top three AI powers alongside the United States and China.
