SK Hynix announced Wednesday it will spend approximately 19 trillion won — roughly $13 billion — to build a new advanced packaging fabrication plant in South Korea. The facility, named P&T7, will be located in Cheongju’s Heungdeok district.
Construction is set to begin this month, according to a regulatory filing. The investment is one of the largest single facility commitments the company has made to date.
The plant will focus exclusively on advanced packaging — the process used to assemble high-bandwidth memory (HBM) chips. HBM is the type of memory that powers most modern AI accelerators, including Nvidia’s flagship products.
SK Hynix is one of the world’s top memory chipmakers and a key supplier to Nvidia. Demand for its products has surged as AI data centre buildouts accelerate globally.
Advanced packaging is not just a manufacturing step — it’s what determines how fast and efficiently memory chips can move data. For AI workloads, that speed is critical.
HBM chips use stacked memory dies connected through tiny vertical channels. Getting that process right at scale is both technically demanding and capital intensive.
The company said it has been pulling forward capacity expansions to keep up with order volumes. Earlier this year, it accelerated the opening of another new memory chip plant in South Korea for the same reason.
The planned investment figure is subject to change based on market conditions and company strategy, SK Hynix noted in its filing.
Earlier this week, SK Hynix said it had started mass production of a next-generation memory module designed specifically for Nvidia’s Vera Rubin AI chip — Nvidia’s next platform after Blackwell.
That announcement came just days before the $13 billion facility news, underlining how quickly the company is moving to lock in supply chain position.
The stock fell around 1% on Wednesday following the investment announcement. That came after the stock had surged to record highs in the prior session.
As of Wednesday, SK Hynix trades on the Korea Exchange under the ticker 000660. The company has not given a projected completion date for the P&T7 facility.
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