South Korean memory chip manufacturer SK Hynix has announced plans to invest approximately $14.6 billion in constructing a high bandwidth memory (HBM) manufacturing plant in the nation.
The Korean chipmaker, also the world’s No.2 memory player, has decided to give up NAND production to expand DRAM lines in a preemptive move to meet the rapidly growing demand for high value-added DRAM products such as high-bandwidth memory (HBM) and double data rate 5 (DDR5) chips, essential parts in running AI chips.“This decision has been made to respond to the burgeoning AI chip demand,” said an official at SK Hynix.“The company has made the change because the M15X site is also near the M15 fab, in which HBM packaging lines are being added.”Last year, SK Hynix started adding new HBM chip packaging lines in the M15 fab in Cheongju.
The addition of the M15X DRAM fab is also expected to place Korea on the front line of semiconductor production, reaffirming Korea’s position as a global cutting-edge chip-producing hub.“The M15X will become a core facility producing AI memory chips for customers across the world,” said Kwak Noh-jung, chief executive officer and president of SK Hynix.“I am confident that the latest investment will drive another big leap, contributing to not only the company but also the future of the national economy.”By Jeong-Soo Hwang, Eui-Myung Park and Chae-Yeon Kimhjs@hankyung.comSookyung Seo edited this article.
In general, HBM production requires not only highly advanced manufacturing technology and complex fabrication processes but also twice bigger manufacturing facilities to churn out the same amount matching that of conventional DRAM chips.“We should have a manufacturing facility ready to produce chips promptly upon receiving orders,” a SK Hynix official said.“Capex will change depending on market conditions".
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