SK Hynix has announced plans to invest Won19tn ($12.9bn) in the construction of a semiconductor packaging facility in Cheongju, North Chungcheong Province, South Korea.
The company stated that it will begin building the new plant in April 2026 and aims to complete the project by the end of 2027.
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The facility, known as P&T7, will focus on advanced packaging for high-bandwidth memory (HBM) chips, which are used extensively in AI applications.
The decision comes amid increasing global demand for memory products tailored for AI as competition intensifies worldwide.
SK Hynix reported that the market for HBM is expected to grow significantly between 2025 and 2030, with projections indicating a compound annual growth rate of 33%.
HBM technology involves stacking dynamic random access memory (DRAM) chips vertically to improve data processing capabilities and efficiency, a feature considered essential in handling large volumes of data generated by complex AI systems.
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By GlobalDataSK Hynix selected Cheongju as the site for its new plant after considering several locations both within South Korea and abroad.
The company indicated that supply chain efficiency and operational stability influenced its choice, alongside support for balanced regional development policies promoted by the government.
The Cheongju site will cover approximately 2.49 million ft² within the Techno Valley Industrial Complex.
This investment forms part of SK Hynix’s broader strategy aimed at bolstering production capacity and maintaining competitiveness in the semiconductor industry.
Previous developments in Cheongju include completion of the M15 fab in 2018, as well as ongoing work on the M15X facility scheduled to open its cleanroom ahead of plan in October 2025.
SK Hynix also noted that changes to government policy designed to lower corporate investment barriers could strengthen future large-scale projects such as P&T7.
The company expects these policy adjustments may help manage investment risks more efficiently.
According to SK Hynix, coordinated efforts between public policy and private sector investments are crucial for advancing South Korea’s industrial base and supporting economic growth in both metropolitan and regional areas.
