Shares of SK Hynix Inc. (HXSCL) gained around 9% in South Korea after following reports of a deal to supply advanced memory for Microsoft Corp.'s (MSFT) new artificial intelligence chip.
Bloomberg reported, citing local media, that the South Korean semiconductor company is the sole supplier of advanced memory for Microsoft.
In mid January, SK Hynix announced its plan to invest 19 trillion Won in a new advanced packaging fab, Package & Test or P&T7, essential for manufacturing AI memory products, such as High Bandwidth Memory or HBM. The advanced packaging facility will complete semiconductor chips produced in a full-process fab into final product form and conduct quality verification.
The company then said the investment aims to meet the surging demand for AI-oriented memory amid the growing competition in the artificial intelligence or AI industry.
According to SK Hynix, the HBM market is projected to grow at a compound annual growth rate of 33% between 2025 and 2030. The company believes it is crucial to proactively respond to this increasing demand.
The investment is aligned with the South Korean government's policy of balanced regional growth and considers supply chain efficiency and future competitiveness.
In late December, media had reported that the U.S. government granted an annual license to and SK Hynix and Samsung Electronics Co., Ltd. to export semiconductor equipment to their China-based facilities for 2026.
The development came after the U.S. Commerce Department's Bureau of Industry and Security or BIS revised its policies, allowing the companies to submit annual plans regarding the chip equipment needed during the period.
In South Korea, SK hynix shares closed Tuesday's regular trading at 800,000 won, up 8.70%.
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