-- SK Hynix (KRX:000660) broke ground at its P&T7 memory packaging facility in Cheongju, South Korea, the semiconductor giant said in a Wednesday press release.
The world's third largest semiconductor manufacturer by sales will invest 19 trillion won in the facility, according to a separate disclosure to the Korea Exchange the same day.
P&T7 will be dedicated to manufacturing AI memory parts such as high-bandwidth memory, which helps boost data processing speed through vertical connection of multiple dynamic random access memory modules, the company said.
The project spans 230,000 square meters within the Cheongju Technopolis Industrial Complex.
Total cleanroom area will span 150,000 square meters, with three floors of wafer-level packaging production lines comprising 60,000 square meters and seven floors of wafer test process lines comprising 90,000 square meters.
The P&T7 is the fifth facility SK Hynix is building in Cheongju, the company said.
SK Hynix plans to complete construction of the wafer test lines by October 2027 and the wafer level packaging facilities by February 2028.
Once completed, the P&T7 facility will raise SK Hynix's total production capacity by about 30%, Reuters reported separately the same day.
SK Hynix has so far invested 70 trillion won in the memory chip segment, according to Reuters.
Semiconductors comprise 70% of company revenue, with NAND flash memory packaging comprising the remainder, the newswire said.