Add AI chips! SK hynix plans to spend USD 1 billion to increase HBM packaging capabilities

Mondo Technology Updated on 2024-03-07

In the context of the rapid development of artificial intelligence, high-bandwidth memory chips (HBMs) have become a key component that is highly sought-after. To seize this important opportunity, SK hynix is increasing its investment in advanced chip packaging.

According to reports, SK hynix plans to invest more than $1 billion in South Korea this year to expand and improve the final link of chip production. Lee Kang-wook, the company's head of chip packaging development, told the company that promoting packaging process innovation is the key to improving HBM performance and reducing power consumption, and it is also the only way for SK hynix to consolidate its leading position in the HBM market.

Lee Kang-wook was a former Samsung Electronics engineer focusing on advanced chip assembly and connectivity technologies. HBM stacks chips and connects via TSVs for faster and more energy-efficient data processing. With the rise of modern AI and the need to process massive amounts of data in parallel, this area has become critical. Lee Kang-wook said

The semiconductor industry spent the first 50 years focusing on the design and manufacturing of the chips themselves, and the next 50 years will revolve around chip packaging. Being at the forefront of this race can help companies rise to the top of the industry.

Analysts estimate that SK hynix's capital expenditure will reach $14 billion this year, of which about 10% will be spent on advanced packaging. At the end of 2019, SK hynix became the leading provider of NVIDIA's AI accelerator with its HBM2E packaging innovation, and the company's valuation soared to $119 billion. Today, it has become the second-largest listed company in South Korea after Samsung Electronics, with a cumulative share price of nearly 120% since the beginning of 2023, far outpacing rival Micron Technology.

Stacking chips for better performance has always been Lee's obsession. In 2000, he received his Ph.D. in 3D integrated microsystem technology from Tohoku University, Japan. In 2002, he joined Samsung's memory division and led the development of Through-Silicon VIA (TSV) 3D packaging technology, which laid the foundation for later HBM technology.

However, Samsung's subsequent attention to HBM technology has shifted to other directions, and global chip manufacturers have generally outsourced packaging and testing to Asian countries. As a result, when SK hynix launched its first HBM in 2013, it took two years for Samsung to develop the HBM2 until the end of 2015.

Sanjeev Rana, an analyst at CLSA Securities Korea, noted:

SK hynix's management has an insight into the industry development trend and is fully prepared. As soon as the opportunity arises, they give it their all. And Samsung has been slow to react in this regard.

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