An artist’s rendering of SK hynix’s P&T7 packaging fab in Cheongju, North Chungcheong Province / Courtesy of SK hynix
SK hynix on Tuesday confirmed the development of its new semiconductor packaging fab, dubbed P&T7, in Cheongju, North Chungcheong Province, because the reminiscence large accelerates enlargement of its manufacturing capability for high-bandwidth reminiscence (HBM) for synthetic intelligence (AI) accelerators.
On its web site, SK hynix mentioned it’ll make investments 19 trillion received ($12.92 billion) to construct the P&T7 fab on a 230,000-square-meter website within the metropolis’s industrial advanced. Building is ready to start in April with completion focused for the top of 2027.
The corporate mentioned it’s “a strategic resolution that mirrored the federal government’s coverage objective of balanced nationwide development whereas additionally making an allowance for provide chain effectivity and future competitiveness.”
In line with the corporate, P&T stands for packaging and testing, and P&T7 will likely be a complicated packaging facility that turns chips produced at front-end fabs into completed merchandise and conducts ultimate high quality inspections.
The P&T7 plan has been rumored since June 2025, as the corporate demolished buildings on the location of LG’s former Cheongju Plant 2 that SK hynix had beforehand acquired to make method for a brand new packaging facility.
P&T7 is designed to work in tandem with the prevailing M15 fab and the M15X facility now being constructed for HBM manufacturing in Cheongju. Of the 2, SK hynix invested 20 trillion received in M15X, which opened its cleanroom in October 2025 forward of schedule and is now within the ultimate phases of apparatus set up.
Together with M15 and M15X, SK hynix has M11, M12 and P&T3 fabs in Cheongju, which is about 130 kilometers south of Seoul.
“The natural hyperlink between the M15X and P&T7 is anticipated to place the town as SK hynix’s new core hub for AI reminiscence, in addition to strengthening its skill to fulfill rising demand for superior reminiscences,” SK hynix mentioned.
An artist’s rendering of SK hynix’s M15 and M15X fab in Cheongju, North Chungcheong Province / Courtesy of SK hynix
Whereas saying the brand new funding, SK hynix harassed the choice aligns with the federal government’s coverage objective of balanced nationwide development.
“Amid the fast shifts within the funding surroundings surrounding the semiconductor trade, there are debates over the that means and function of investments within the noncapital space,” the corporate mentioned.
“SK hynix sees past short-term effectivity or rapid features, and seeks to make contribution in strengthening the nation’s industrial basis over the long run and constructing a construction through which the capital and noncapital areas develop collectively.”
The corporate referred to debates amongst political voices that semiconductor fabs needs to be situated throughout the nation for balanced development alongside the semiconductor trade’s hesitation, citing infrastructure and workforce points.
President Lee Jae Myung on Dec. 10, 2025, advised Samsung Electronics’ chip division head Vice Chairman Jun Younger-hyun and SK hynix CEO Kwak Noh-jung that he hopes for “semiconductor firms to show their eyes to the southern area and make a contribution to the nation’s balanced growth.” Minister of Local weather, Vitality and Atmosphere Kim Sung-hwan additionally floated the need of dispersing the chip cluster throughout a radio interview.
The feedback have been interpreted to be concentrating on that semiconductor advanced that the 2 firms are constructing or set to construct in Yongin, Gyeonggi Province, about 50 kilometers south of Seoul. SK hynix had already begun development, whereas Samsung Electronics has just lately signed offers to buy land in Yongin.
Lawmakers from the southern a part of the nation have additionally raised their voices, with these from North Jeolla Province urging the commercial advanced to be relocated to the province’s Saemangeum space, about 250 kilometers southwest of Seoul.
Although presidential spokesperson Kim Nam-joon mentioned Thursday that any relocation resolution can be as much as the corporate, lawmakers’ calls are rising. Semiconductor trade officers expressed concern that political concerns may find yourself dictating company choices based mostly on feasibility, as a result of each Samsung and SK hynix thought of Yongin’s grid infrastructure, water assets and the benefit of the capital space in attracting staff.
Samsung Electronics operates its fundamental semiconductor complexes in Yongin, Hwaseong and Pyeongtaek, all in Gyeonggi Province, which surrounds Seoul. It additionally has a packaging facility in Asan, South Chungcheong Province, situated about 100 kilometers south of Seoul.
