SK Hynix to Invest $13 Billion in “P&T7” Advanced Packaging Hub to Cement AI Leadership
By Cygnus | 13 Jan 2026
SK Hynix Inc., a key supplier to Nvidia and a leading producer of high-bandwidth memory (HBM), announced on Tuesday a major 19 trillion won (~$12.9 billion) investment to build a new advanced packaging facility in South Korea. The plant, dubbed P&T7, is aimed at strengthening the company’s position as the AI-driven memory boom accelerates.
The new hub will be located on a 230,000-square-metre site within the Cheongju Technopolis Industrial Complex. Construction is scheduled to begin in April 2026, with a targeted completion date of late 2027.
Strategic integration and market positioning
The P&T7 facility is expected to create an “organic linkage” with SK Hynix’s existing M15X fab in Cheongju. This proximity matters for advanced back-end processes—where wafers are sliced, stacked, tested, and packaged—helping improve efficiency and yield stability for next-generation memory products.
The expansion strengthens SK Hynix’s ability to scale output of cutting-edge technologies such as HBM3E and the upcoming HBM4, both of which are central to AI accelerator performance.
Industry estimates continue to place SK Hynix as the global leader in HBM shipments, with market share commonly assessed at around 60%—well ahead of other major memory competitors.
The company remains one of the most important vendors for Nvidia’s high-performance AI GPU ecosystem, supplying memory solutions critical to next-generation compute platforms.
Market context
Despite the long-term bullish outlook for AI memory demand, SK Hynix shares closed 1.53% lower at ₩737,500 on the Korea Exchange (KRX). Analysts attributed the decline largely to near-term profit-taking, following a sharp rally earlier this month.
Summary
SK Hynix is committing 19 trillion won (~$12.9B) to build the P&T7 advanced packaging facility in Cheongju, with completion targeted for late 2027. The investment supports scaling of AI memory products such as HBM3E and HBM4, strengthening SK Hynix’s position as the leading supplier in the HBM market. While shares dipped on profit-taking, the move reinforces South Korea’s strategic role in the global AI hardware supply chain.
Frequently asked questions (FAQs)
Q1: How much is SK Hynix investing in the new plant?
SK Hynix announced an investment of 19 trillion won, equivalent to approximately $12.9 billion.
Q2: Where will the facility be built?
The plant will be built in the Cheongju Technopolis Industrial Complex in North Chungcheong Province, South Korea.
Q3: What is the production timeline?
Construction is scheduled to begin in April 2026, with completion targeted for late 2027, according to the company.
Q4: What will P&T7 focus on?
The facility will specialise in advanced packaging for AI-oriented memory, including HBM3E and next-generation HBM4.
Q5: How dominant is SK Hynix in the HBM market?
Industry estimates generally place SK Hynix as the HBM market leader, with around 60% share of global HBM shipments.
Q6: Why did the stock fall despite the announcement?
Shares slipped mainly due to short-term profit-taking after a strong early-year rally, even as long-term AI memory demand remains strong.
