SK Hynix in Talks for Memory Unit in India

New Delhi, India — SK Hynix is exploring a partnership with an Indian company to establish an assembly and testing unit in India, according to sources familiar with the matter. This marks the second significant entry of a major chip manufacturer into the Indian market, following U.S.-based Micron Technology.

The Icheon, Korea-based SK Hynix, traditionally viewed as a smaller competitor to Samsung Electronics, has gained traction in the AI-driven tech landscape. It reached a market cap of $290 billion as of November 2025. One source mentioned that SK Hynix is currently engaged in talks with Noida-based companies to create an ATMP (assembly, testing, marking, and packaging) facility, likely to focus on DDR5 memory chips.

These discussions reportedly include talks with a cluster of Indian states, with Odisha emerging as a potential frontrunner for the facility’s location. If established, this unit would join the ranks of other memory giants setting up operations in India, signifying a growing trend in the local semiconductor industry.

DDR5, the latest generation of dynamic random-access memory (DRAM), offers improved speeds, efficiency, and performance compared to its predecessor, DDR4. Neither SK Hynix nor the Odisha government responded to inquiries about the ongoing discussions.

India is becoming increasingly attractive to memory chip manufacturers, bolstered by financial incentives under the government’s Indian Semiconductor Mission (ISM). Firms may receive up to 70% support for capital expenditures, alongside a rapidly expanding domestic market and access to a skilled workforce, according to Parv Sharma, a senior analyst at Counterpoint Research.

SK Hynix has made headlines recently, announcing significant investments, including a multi-billion-dollar project in advanced chip packaging in Indiana and a notable investment in the Yongin Semiconductor Cluster in South Korea to address rising demand for high-bandwidth memory (HBM).

“The AI-driven demand for memory chips is set to keep increasing, making expansion in India a strategic move for companies,” Sharma explained. Meeting local demand could provide cost advantages and help establish a comprehensive memory assembly and semiconductor fabrication ecosystem in India.

According to Counterpoint Research, Samsung reclaimed the top spot in the global memory market in Q3 2025, generating $19.4 billion in memory revenue, while SK Hynix followed closely with $17.5 billion. Despite slipping in the overall memory market, SK Hynix maintained its leading position in the DRAM segment.

In June 2022, Micron Technology also announced plans to build an assembly and testing facility in Gujarat, which primarily focuses on DRAM and NAND products. This project expects to contribute significantly to job creation as well, potentially generating up to 20,000 jobs directly and indirectly.