SK Hynix Invests $13 Billion in a New AI Chip Packaging Plant

South Korean semiconductor giant SK Hynix announced on Tuesday its plan to invest 19 trillion Korean won (approximately $12.88 billion) in a state-of-the-art packaging and testing facility known as P&T7. This investment aims to meet the skyrocketing demand for AI memory amidst intensifying global competition.

The new facility will focus on advanced packaging, a critical step for manufacturing High Bandwidth Memory (HBM) products. Construction is set to begin this April, with completion expected by the end of 2026. According to SK Hynix, the HBM market is projected to grow at a compound annual growth rate (CAGR) of 33% between 2025 and 2030. The P&T7 plant will be located in Cheongju, integrating with the existing M15X facility to establish the city as a major global hub for next-generation AI memory production.