Cheongju: SK hynix Inc. announced plans to construct a new advanced packaging fabrication plant in Cheongju, aiming to establish a full-cycle high-bandwidth memory (HBM) production hub in response to increasing demand from the artificial intelligence (AI) sector.

According to Yonhap News Agency, the company will invest 19 trillion won (US$12.9 billion) to build the new packaging and testing (P and T) fab, named P and T7, approximately 110 kilometers south of Seoul. Construction is set to begin in April, with a target completion before the end of 2027. SK hynix currently operates three fabrication plants-M11, M12, and M15-in Cheongju and is preparing its M15X plant for HBM production.

The company emphasized the importance of close proximity to front-end fabs for advanced packaging processes, citing benefits in connectivity, logistics, and operational stability. Upon completion, SK hynix will have a comprehensive chip cluster in Cheongju, covering both front-end and back-end processes for NAND flash, dynamic random access memory (DRAM), and HBM products.

The strategic connection between the M15X plant and P and T7 will position Cheongju as a new hub for SK hynix's AI memory production. This development will enhance the company's capacity to meet the rising demand for AI memory chips. The global market for HBM products is projected to grow by an average of 33 percent annually through 2030, based on research conducted by Yole Group.

P and T facilities are responsible for back-end semiconductor processes, finalizing individual chips from wafers processed in the front-end stage and packaging them into finished products.