The HBM production map, long centered on Korea, is shifting... SK hynix makes a bold move in the U.S.

[Financial News, West Lafayette = Lee Byung-chul]SK hynix's high-bandwidth memory (HBM) production base under construction in Indiana is more than just an overseas back-end processing plant. It is a bold move to expand the HBM production map, now a key component in the global AI semiconductor race, into the United States. For the U.S., it strengthens the domestic HBM supply chain. For SK hynix, it secures a forward base that combines production and research and development (R&D) in the U.S., where the world's largest AI customers are concentrated. SK hynix is building the Indiana facility as the first advanced HBM packaging and R&D hub in the United States.■ 80% of HBM is produced in Korea... the global production map is changingAt present, the center of gravity for global HBM production remains in Asia, especially Korea. According to industry sources on the 27th, about 80% of global HBM supply is produced in Korea. HBM-related production bases are spread across Taiwan, Japan and Singapore, with new investment also under way in the United States. The market is effectively dominated by three players: SK hynix, Samsung Electronics and Micron Technology, Inc.
In particular, the key production bases of SK hynix and Samsung Electronics, which lead the HBM market, are concentrated in Korea. SK hynix is expanding HBM capacity centered on Icheon, Gyeonggi Province, and Cheongju. In Cheongju, it is increasing HBM output, including next-generation DRAM, while continuing investment in advanced packaging facilities. Once the Yongin Semiconductor Cluster begins operation, an AI memory production belt linking Icheon, Cheongju and Yongin will be established. SK hynix recently decided to invest a total of 54 trillion won in Yongin and Cheongju to further expand production infrastructure for next-generation memory, including HBM.
Samsung Electronics also relies on Korea as a central pillar of HBM production. Cheonan is a major hub for HBM back-end processing and advanced packaging, while Pyeongtaek is also expanding HBM capacity. Additional HBM investments are under way in places such as Onyang and Cheonan.
Micron Technology, Inc., a U.S. company, also relies heavily on Asia for HBM production. It uses Taiwan as a major base for advanced DRAM and HBM production, is expanding advanced packaging capacity for HBM in Singapore, and is increasing investment in advanced DRAM in Japan. In the end, if you map out the production networks of the three companies that dominate the HBM market, Asia, including Korea and Taiwan, remains the center. With SK hynix adding the Indiana fab, the global HBM production map is now expanding in earnest to the United States, the world's largest AI market.■ AI chips in the U.S., HBM in AsiaThis is also a paradox of the AI semiconductor supply chain. Global AI accelerator designers such as NVIDIA Corporation and AMD are based in the United States. Big Tech companies such as Google Experience Center, Amazon.com, Inc. and Meta Platforms, which are pouring enormous sums into AI infrastructure, are also U.S. firms. The companies that design AI semiconductors and the customers that consume them most are concentrated in the U.S., yet the center of HBM production, an essential component in those AI chips, is in Asia, including Korea and Taiwan.
That is where the strategic significance of SK hynix's Indiana fab lies. Once the Indiana facility begins operation, cutting-edge HBM wafers produced in Korea will be shipped to the U.S., where they will go through advanced packaging and testing before being supplied to American customers. In effect, this will create a Korea-U.S. HBM production system in which Korea handles core manufacturing competitiveness and the U.S. takes charge of product completion and customer support.
For the U.S., it secures part of the HBM supply chain, a strategic asset in the AI era, within its own borders. For SK hynix, it allows the company to preserve Korea's manufacturing strengths while establishing a production base in the middle of the world's largest AI market. The arrangement aligns the interests of both sides. SK hynix also expects the Indiana investment to fill gaps in the U.S. advanced packaging supply chain and reduce dependence on overseas supply networks.■ HBM competition is shifting from 'more' to 'customized for customers'Another meaning of the Indiana investment is that the nature of HBM competition is changing. HBM is different from general-purpose memory. It stacks multiple DRAM chips vertically and connects them so they can exchange data at ultra-high speed with computing chips such as GPUs. As HBM generations advance, the importance of designs tailored to customers' AI accelerator architectures and of advanced packaging technology also grows.
The focus of competition is also shifting from simply 'who can make more' to 'who can develop and supply the HBM customers want, faster.' That is why SK hynix is building not only a production line in Indiana but also an advanced packaging R&D testbed. It will be able to receive U.S. customer requirements locally, develop next-generation memory, and move from prototyping and performance validation to mass production.
Its joint research with Purdue University on next-generation system integration and packaging technology follows the same logic. The strategy is to bring production, R&D and customers into a single ecosystem. Since announcing the Indiana investment, SK hynix has been pursuing joint research with Purdue University on advanced packaging, heterogeneous integration and next-generation memory systems.
Noh-Jung Kwak, Chief Executive Officer (CEO) of SK hynix, said, "The United States is the center of AI innovation, where top customers, research capabilities and the ecosystem come together," adding, "We will become the most trusted partner in building the future of AI in the United States."
[email protected] Reporter Lee Byung-chul Reporter