SK Hynix Invests Over $1 Billion in Advanced Packaging

In recent developments, SK Hynix is significantly increasing investments in cutting-edge chip packaging technology to meet the escalating demand for crucial components, such as High Bandwidth Memory (HBM), within the rapidly evolving field of artificial intelligence (AI) development.

Vice President Lee Kang-Wook, responsible for packaging development at SK Hynix, has revealed that the company is injecting over $1 billion in capital in South Korea to expand and refine its chip packaging capabilities. The innovative advancements in this process play a pivotal role in enhancing the efficiency of AI storage, particularly HBM, by reducing power consumption, improving overall performance, and solidifying SK Hynix's prominent standing in the HBM market.

While SK Hynix has not disclosed its current fiscal year's capital expenditure, industry analysts estimate a significant allocation, potentially around 10% of the budget, directed towards the development of advanced packaging solutions.

Vice President Lee emphasized a strategic shift in the semiconductor industry's focus, transitioning from the frontend, involving chip design and manufacturing, to backend processes, particularly packaging, in the upcoming decades.

Under Vice President Lee's guidance, SK Hynix has introduced innovative packaging for its third-generation HBM technology, HBM2E. In 2022, the company's research and development team introduced a state-of-the-art packaging technology termed Massive Reflow Molded Underfill (MR-MUF). This technology not only enhances heat dissipation but also improves overall production yield. The majority of SK Hynix's new investments are earmarked for advancing MR-MUF and Through Silicon Via (TSV) technology.

This surge in technological advancements is not unique to SK Hynix. Other major players in the HBM market are also making significant strides. Micron, for instance, announced the commencement of mass production for its 24GB 8-Hi HBM3E in late February, with plans to integrate it into Nvidia's H200 GPU by the second quarter of 2024. Similarly, Samsung has successfully completed the development of its 36GB 12-Hi HBM3E and anticipates commencing mass production in the first half of 2024. SK Hynix, aiming to stay at the forefront, plans to kickstart HBM3E production by the first quarter to early second quarter of 2024.