SK hynix said Tuesday it will invest 19 trillion won ($13 billion) to build a new advanced packaging fab in Cheongju, as it responds to surging demand for high bandwidth memory, a key memory chip in AI applications.
Via its newsroom, the company announced plans for a new package and test facility to be built within the Cheongju Technopolis Industrial Complex, near the M15X semiconductor fab currently under construction.
The new facility, dubbed P&T7, will be built on a 231,000-square-meter site. Construction is set to begin in April, with completion targeted for the end of 2027. A package and test facility handles the final stage of chip manufacturing, packaging semiconductors produced in the front-end fabs as finished products, and conducting quality inspections.
"For advanced packaging processes, proximity to front-end manufacturing is critically important in terms of integration, logistics and operational stability," the chipmaker said.
"Our investment decision aligns with the government's policy to promote balanced regional development, while also taking into account supply efficiency and the company's long-term competitiveness."
Citing data from market research firm Yole Group, SK hynix projects the global HBM market to grow at a compound annual growth rate of 33 percent from 2025 to 2030, prompting the company to secure production capacity in advance.
The company said the organic link between the already-underway M15X fab in Cheongju and the newly planned P&T7 facility is expected to position the city as a new core hub for its AI memory business, while strengthening the company's ability to respond to rising AI chip demand.
"In making our decision, we also considered the positive impacts of investing outside of the Seoul metropolitan area and the importance of balanced growth among regions," SK hynix said. "Through the P&T7 investment in Cheongju, we aim to strengthen the foundation of the chip industry while supporting growth in both the Metropolitan region and other areas."
SK hynix completed the construction of its M15 fab in Cheongju in 2018 and announced a separate 20 trillion won investment plan for the M15X fab for HBM production in 2024. The M15X facility opened its cleanroom earlier than scheduled last October and is currently setting up production equipment, the company said.
The new P&T7 facility will add to SK hynix's existing advanced packaging operations in Icheon; at its P&T3 plant in Cheongju, which handles NAND flash chips; and in West Lafayette in Indiana, US.
The chipmaker also said it is closely reviewing recent institutional measures pursued by the government to ease corporate investment burdens and enhance the executability of large-scale, long-term investments.
The company said improvements to the regulatory and institutional environment are expected to increase the efficiency of investment structures and help manage the complex risks associated with major capital spending.
herim@heraldcorp.com
