In a bid to fulfill the reminiscence provide disaster head on, SK Hynix proclaims it should make investments practically $13 billion into contemporary AI packaging facility
SK Hynix has introduced this week it should make investments 19 trillion gained (or $12.90 billion) into a brand new superior chip packaging facility in Cheongju, South Korea—and it is not the one firm making multi-billion greenback strikes to fulfill the calls for of the raging reminiscence provide disaster.
SK Hynix is one in every of Nvidia’s main suppliers of high-bandwidth reminiscence (HBM) for its AI accelerators. The deliberate chip packaging facility is about to start development this April, however will not have the ability to deal with demand till after work is full in late 2027 (through Bloomberg). This follows information final 12 months of the corporate committing a further $500 billion to constructing 4 new reminiscence fabs, with the primary of those aiming for the same 2027 completion window.
Chey Tae-won, the chairman of SK Hynix’s guardian group, SK Group, just lately spoke throughout a keynote speech on the SK AI Summit in Seoul, saying, “We’ve got entered an period through which provide is going through a bottleneck. We’re receiving reminiscence chip provide requests from many corporations, and we’re pondering onerous about find out how to deal with all calls for.”
Micron shut down their shopper sub-brand Essential in favour of focussing on supplying AI knowledge centres, although the discharge of the Micron 3610 NVMe SSD has since steered the corporate nonetheless desires to maintain a toe within the shopper area shifting ahead. Nonetheless, like many reminiscence producers, it sees that financial winds stay beneficial for AI acceleration (SK Hynix predicts the HBM market will, on common, develop about 30% yearly between 2025 and 2030, in accordance with Reuters).
“Breaking floor at Micron’s New York megafab is a pivotal second for Micron and the USA,” Micron CEO Sanjay Mehrotra mentioned, “I wish to thank President Trump, Secretary Lutnick, Administrator Zeldin, Governor Hochul, Senator Schumer, Congressman Mannion, Congresswoman Tenney, County Govt McMahon and all of our companions within the Administration and Congress for his or her management and partnership in attending to this milestone.”
He provides, “As the worldwide financial system enters the AI period, management in superior semiconductors would be the cornerstone in innovation and financial prosperity. Our investments and progress solidify our place as the one United States producer of reminiscence.”
However even with all of those billions from two main reminiscence makers, there’s little use hoping the reminiscence disaster shall be alleviated earlier than the top of this 12 months. For one factor, all of those builds will take greater than the 12 months to finish and will not be actually geared in direction of assembly shopper demand. However for an additional, even with reminiscence manufacturing scaling up, the demand coming from AI knowledge centres is rising even sooner, with some trade observers predicting the reminiscence provide disaster might run into 2028 and past.
Greatest PC gaming equipment 2026