Industry projections cited by SK Hynix indicate the HBM market will grow at a compound annual rate of 33 percent between 2025 and 2030. That outlook has motivated leading manufacturers to shift capacity toward premium memory, tightening availability of conventional DRAM for PCs, smartphones and consumer electronics. The resulting imbalance is contributing to a broad upswing in contract prices.
Research firm TrendForce last week estimated that average DRAM prices, including HBM, will jump 50 to 55 percent in the current quarter when compared with the fourth quarter of 2025. The organization attributed the increase to constrained supply chains and aggressive customer procurement for AI servers. A separate Reuters market overview noted parallel price momentum across other semiconductor categories, underscoring the impact of AI-centric demand on broader electronics manufacturing.
Higher selling prices have lifted financial results for memory producers. Samsung Electronics, SK Hynix’s main competitor, recently said it expects operating profit for the December quarter to nearly triple year over year. Samsung has also disclosed plans to expand HBM capacity, setting the stage for intensified competition once new lines reach volume output.
For SK Hynix, the Cheongju project complements existing domestic facilities and follows sizeable investments outside Korea, including participation in U.S. initiatives to strengthen chip-supply resilience. Executives have signaled that the company is reviewing a potential American stock listing after its Seoul-traded shares rallied throughout 2025. The stock is up roughly 12 percent since the start of the year, although it slipped about 2.5 percent during Tuesday’s session after the announcement.
The coming plant will undertake “back-end” processes that place several DRAM dies into a single vertical stack connected by micro-bumps and through-silicon vias. This three-dimensional arrangement delivers wide data pathways and greater bandwidth while limiting power draw, features essential for AI accelerators that process enormous datasets. The packaging lines will also incorporate testing and validation stages to ensure reliability under heavy computational loads.
SK Hynix did not disclose capacity figures, but analysts expect the site to contribute meaningful volume once ramp-up is complete. Because HBM production requires additional steps, including wafer thinning, die stacking and specialized thermal management, back-end space is a bottleneck for the wider memory industry. The Cheongju facility is intended to ease that constraint and provide flexibility for future HBM generations.
While the investment underscores SK Hynix’s confidence in long-term AI adoption, it also highlights challenges for purchasing managers in consumer segments. With manufacturers prioritizing premium products, supplies of standard DRAM can tighten, raising costs for smartphones, laptops and other devices. Market observers will monitor whether increased HBM capacity eventually frees traditional DRAM lines or whether competition for skilled labor and high-precision equipment keeps overall output constrained.
Construction of the Cheongju plant adds to a broader pipeline of semiconductor infrastructure projects announced across Asia, North America and Europe as governments and companies seek to secure supply chains. South Korea has laid out incentives to maintain its leadership in memory, while the United States, Japan and the European Union are deploying subsidy programs aimed at diversifying global production.
With demand forecasts remaining robust, SK Hynix’s expansion strategy reflects the company’s intention to sustain its lead in HBM and capture value from AI-driven growth. The success of the Cheongju project will depend on executing a complex build schedule, integrating advanced packaging technologies and navigating a competitive landscape where rivals are pursuing similar goals.
Crédito da imagem: Jung Yeon-je / AFP / Getty Images
