SK Hynix held a board meeting on the 22nd and approved an investment of 7.0931 trillion won for the construction of its P&T7 advanced packaging fab in Cheongju, North Chungcheong Province, according to a regulatory filing. The decision was driven by the need to respond preemptively to production increases and shorten the cleanroom opening schedule, with the company accelerating the execution timing of construction investment. The P&T7 facility is a dedicated advanced packaging fab essential for producing high-bandwidth memory (HBM) and other AI semiconductors, addressing global artificial intelligence memory demand as the company expands its backend semiconductor manufacturing capacity.
SK Hynix Invests 7.0931 Trillion Won in Cheongju P&T7 Facility
SK Hynix disclosed that the 7.0931 trillion won investment represents 5.88% of its consolidated equity of 120.6668 trillion won as of the end of the most recent fiscal year. The investment period runs from November 26 last year to December 31, 2032. The board resolution reflects an increase in the amount subject to board approval as the production facility construction schedule has been moved forward.
The P&T7 facility is under construction at the Cheongju Technopolis Industrial Complex in Oebuk-dong, Heungdeok-gu, Cheongju City, North Chungcheong Province. The advanced packaging fab will handle backend processes including packaging chips produced in front-end processes and conducting final performance verification for AI semiconductors such as HBM. The total project cost remains unchanged at approximately 19 trillion won for factory construction and equipment installation, with the site covering approximately 230,000㎡ (70,000 pyeong). The cleanroom area alone spans approximately 150,000㎡ (46,000 pyeong).
P&T7 Construction Timeline Spans November Last Year to December 2032
SK Hynix announced in January last year that it would invest a total of 19 trillion won to build an advanced packaging fab in Cheongju, North Chungcheong Province, and broke ground in April this year. The company previously stated that a portion of funds raised through American Depositary Receipt (ADR) issuance would be utilized for the construction of the Cheongju P&T7 advanced packaging fab.
The 7.0931 trillion won disclosed in the filing is included within the total investment of 19 trillion won, with no change to the overall project budget announced earlier. The company added that the investment amount and completion timeline may vary depending on the progress of the investment process and changes in the business environment.
Company Accelerates Investment Execution to Shorten Cleanroom Opening
A SK Hynix official explained that the company advanced the timing of construction investment execution to respond preemptively to production increases and shorten the cleanroom opening schedule, which led to the board re-approving the existing investment plan. The P&T7 facility is designed as a dedicated fab for advanced packaging processes critical to AI semiconductor production, positioning SK Hynix to meet growing global demand for AI memory solutions.
FAQ
What did SK Hynix approve on the 22nd?
SK Hynix held a board meeting on the 22nd and approved an investment of 7.0931 trillion won for the construction of its P&T7 advanced packaging fab in Cheongju, North Chungcheong Province. The investment represents 5.88% of the company's consolidated equity and covers the period from November 26 last year to December 31, 2032.
Why did SK Hynix re-approve the P&T7 investment plan?
The board re-approved the investment plan because the production facility construction schedule was moved forward, increasing the amount subject to board approval. A company official stated that the execution timing of construction investment was advanced to respond preemptively to production increases and shorten the cleanroom opening schedule.
