SK Hynix has introduced plans to take a position Won19tn ($12.9bn) within the development of a semiconductor packaging facility in Cheongju, North Chungcheong Province, South Korea.
The corporate acknowledged that it’s going to start constructing the brand new plant in April 2026 and goals to finish the undertaking by the top of 2027.
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The power, often called P&T7, will deal with superior packaging for high-bandwidth reminiscence (HBM) chips, that are used extensively in AI functions.
The choice comes amid growing international demand for reminiscence merchandise tailor-made for AI as competitors intensifies worldwide.
SK Hynix reported that the marketplace for HBM is predicted to develop considerably between 2025 and 2030, with projections indicating a compound annual development fee of 33%.
HBM know-how entails stacking dynamic random entry reminiscence (DRAM) chips vertically to enhance information processing capabilities and effectivity, a function thought-about important in dealing with giant volumes of knowledge generated by complicated AI methods.
SK Hynix chosen Cheongju as the location for its new plant after contemplating a number of places each inside South Korea and overseas.
The corporate indicated that offer chain effectivity and operational stability influenced its alternative, alongside assist for balanced regional growth insurance policies promoted by the federal government.
The Cheongju web site will cowl roughly 2.49 million ft² inside the Techno Valley Industrial Complicated.
This funding kinds a part of SK Hynix’s broader technique geared toward bolstering manufacturing capability and sustaining competitiveness within the semiconductor business.
Earlier developments in Cheongju embody completion of the M15 fab in 2018, in addition to ongoing work on the M15X facility scheduled to open its cleanroom forward of plan in October 2025.
SK Hynix additionally famous that adjustments to authorities coverage designed to decrease company funding limitations might strengthen future large-scale tasks resembling P&T7.
The corporate expects these coverage changes might assist handle funding dangers extra effectively.
In line with SK Hynix, coordinated efforts between public coverage and personal sector investments are essential for advancing South Korea’s industrial base and supporting financial development in each metropolitan and regional areas.
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