▪ Announces a total investment of KRW 100 trillion in Cheongju.
▪ Plans to build M17, a NAND production fab, and P&T7, an advanced packaging facility, in Chungcheong Region, an established hub ready for expansion.
▪ “We will develop Chungcheong Region into the global center of AI semiconductor innovation.”
SK hynix President & CEO Kwak Noh-Jung announced today the company’s investment plan to further strengthen Korea’s future competitiveness, centered on the Chungcheong Region. The announcement was made at the ‘National Briefing on the Strategy for Fostering Next-Generation Advanced Industries in the Chungcheong Region,’ held at Samsung Display’s Asan Campus in Asan, South Chungcheong Province.
“The current supply shortage, coupled with surging demand, has made expanding production capacity essential,” said CEO Kwak, adding “Cheongju is the optimal site for the rapid and efficient expansion of NAND fabs.”
He also stated, “SK hynix will invest a total of KRW 100 trillion in Cheongju—KRW 80 trillion in the M17 NAND production fab and KRW 20 trillion in the P&T7 advanced packaging facility.” He emphasized, “We will re-establish Cheongju as a key hub for driving the competitiveness of the memory semiconductor industry in Korea.”
The following are the key points from the CEO’s presentation.
○ Explosive Growth in NAND Demand Driven by AI Expansion
- As the adoption of AI services has accelerated in earnest, demand for enterprise SSDs and NAND flash memory, alongside HBM and server DRAM, is growing rapidly.
- The emergence of agentic and physical AI is expected to further expand both the applications and demand for NAND products.
○ The Chungcheong Region: A Base Ready to Meet Growing Demand
- Demand for NAND continues to increase rapidly, sequentially leading supply shortages. Expanding NAND production capacity has become necessary.
- A large-scale land, reliable infrastructure–including electricity and water supply–and timing are crucial for constructing semiconductor manufacturing facilities.
- From this perspective, Cheongju is the optimal site for the rapid and efficient expansion of NAND fabs.
- It has the advantage of efficient production through coordination with the existing Cheongju fab. Additionally, construction can proceed immediately since the land, power, and water infrastructure are already prepared.
○ KRW 100 Trillion Investment to Build M17 and P&T7
- SK hynix plans to invest a total of KRW 100 trillion in Cheongju.
- According to the investment plan, approximately KRW 80 trillion will be invested in M17, a new NAND fabrication facility, while KRW 20 trillion will be invested in P&T7 and other facilities.
- P&T7 is expected to be completed by the end of 2027 and will serve as SK hynix’s advanced packaging facility.
- Construction of M17 is scheduled to begin next year, with operations targeted to commence in the first half of 2029.
- Through these investments, SK hynix will re-establish Cheongju as a key hub for driving the competitiveness of the memory semiconductor industry in Korea.
○ Pushing Forward with 1 GW AI Data Center Project in the Chungcheong Region
- SK Group will expand its AI data center infrastructure nationwide, alongside its semiconductor production bases.
- The group plans to phase in a total of 15 GW of AI data center capacity across the country, starting with an initial 5 GW.
- In particular, a 1 GW AI data center will be built in the Chungcheong Region to foster an AI industrial ecosystem where semiconductor production and AI computing create powerful synergies.
○ Wrap-up
- South Korea already possesses world-class competitiveness in memory semiconductors. This edge is the result of decades of cooperation between the government and businesses, driven by the dedication of the entire nation.
- SK hynix has achieved significant progress in the Chungcheong Region with NAND, HBM, and advanced packaging.
- Leveraging these milestones as a stepping stone, we will continue to nurture the Chungcheong Region into a global hub for AI innovation.
