Betting on continued growth in AI workloads, SK Hynix is committing $12.9 billion to build a new advanced packaging plant in Cheongju. The P&T7 facility is designed to expand the company’s high-bandwidth memory output, which has become central to modern AI accelerators.
The project is slated to break ground in April 2026 and reach completion by late 2027. Located in Cheongju near the M15 fab and the under-construction M15X facility, the new plant extends an expanding manufacturing cluster that underpins SK Hynix’s next-generation DRAM and high-bandwidth memory roadmap.
According to SK Hynix, the P&T7 facility is built to handle booming demand for AI products. The company framed the project not just as a capacity upgrade, but as a long-term bet on the region that should bring new jobs and economic activity.
The expansion comes as chipmakers race to lock in AI supply chains. SK Hynix, one of the leading suppliers of high-bandwidth memory, is also a partner in OpenAI’s ambitious Stargate project. Along with domestic rival Samsung, the company has signed an unusual agreement to push combined DRAM output to as much as 900,000 wafers a month, though no timeline has been given.
In addition to its Stargate commitments, SK Hynix is planning a new AI data center in South Korea’s southwest. The coordinated ramp-up in production capacity is expected to relieve ongoing constraints in the supply of DRAM and other data-center-critical silicon.
The ongoing mismatch between supply and demand continues to influence the market. Analysts expect Samsung and SK Hynix to drive notable DRAM price increases, with potential rises of up to 70 percent. Meanwhile, large technology companies and data center operators are actively securing future supply, underscoring the importance of investments such as the Cheongju packaging plant.
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