German adhesives and materials maker Henkel will set up a research center in Seoul to develop packaging materials for artificial intelligence (AI) chips and high-bandwidth memory (HBM), the Seoul Metropolitan Government said Monday. The city signed a memorandum of understanding with the company at Seoul City Hall on Monday. Under the agreement, Henkel will make 12.1 billion won ($8.9 million) in foreign direct investment in Seoul by 2031 and hire 15 new researchers, including holders of master’s and doctoral degrees. The center, called Henkel Technology Center Korea, will be located in the Gasan Digital Complex, a tech business district in Seoul’s Geumcheon District. It will cover about 5,112 square meters, of which 1,205 square meters will be dedicated to chip packaging materials. The center will bring together Henkel’s existing research operations in Korea and add new research and development on materials for AI chips and HBM, a type of stacked memory chip used in AI servers. Chip packaging is the process of protecting semiconductor chips and connecting them to other components.