SK Hynix said on Wednesday it plans to allocate about 19 trillion won, equivalent to roughly $13 billion, toward a new semiconductor fabrication project aimed at expanding its capacity for artificial intelligence memory. The investment will fund construction of an advanced packaging fabrication plant, designated P&T7, to be located in the Heungdeok district of Cheongju.
According to a regulatory filing, ground-up construction is scheduled to commence in April 2026. Company disclosures state the new P&T7 facility will concentrate on advanced chip packaging - a key process for improving the performance and power efficiency of high-bandwidth memory used in AI workloads.
SK Hynix described the announced investment as subject to modification depending on market conditions and the firm’s strategic priorities. The company has been increasing capital expenditure in recent periods to address strong global demand for semiconductors tailored to AI applications and to respond to intensified competition within the memory chip market.
Earlier this week, SK Hynix reported it had begun mass production of a next-generation memory module engineered for use with Nvidia’s next-generation Vera Rubin artificial intelligence chip. The production update and the P&T7 announcement form part of the company’s efforts to broaden its role in the AI memory supply chain.
Market reaction was modest on the day of the announcement: SK Hynix’s shares fell 1% on Wednesday after having reached record highs in the prior trading session. The company is identified in filings under the ticker 000660.
The planned P&T7 plant emphasizes advanced packaging capabilities rather than raw wafer fabrication, reflecting an emphasis on integrating and optimizing memory components for high-performance AI systems. The firm noted that the final investment figure could change, linking any adjustments to evolving market dynamics and corporate strategy.
The information provided in this article is based on the company's regulatory filing and recent production disclosures. Details such as the investment amount, construction start date and the plant’s intended technical focus are those stated by the company and may be revised by the company in future filings.