[News] SK hynix Breaks Ground on P&T7 Advanced Packaging Fab in Cheongju, Wafer-level Packaging Set for 2028 Ramp

Ahead of its earnings release tomorrow, SK hynix announced another major investment amid the AI memory boom, holding a groundbreaking ceremony for its P&T7 facility in Cheongju on the 22nd. According to Reuters and a company press release, the KRW 19 trillion (US$12.85 billion) project will be built in phases, with the WT (wafer testing) line targeted for October 2027, followed by the WLP (wafer-level packaging) line in February 2028.

SK hynix said P&T7 is a dedicated advanced packaging facility for AI memory, including HBM. Notably, it will also mark the company’s fifth production site in Cheongju, following M11, M12, M15, and M15X. The new fab, according to SK hynix, is expected to create strong synergies with existing nearby operations, further reinforcing Cheongju as a key hub for advanced memory production.

The facility will include roughly 60,000 sqm of WLP process space across three floors and about 90,000 sqm of WT (wafer test) lines across seven floors, bringing total cleanroom area to around 150,000 sqm, as noted by SK hynix.

It is worth noting that SK hynix is doubling down on HBM advanced packaging beyond Korea. Citing Herald Economy, the company has just broken ground on its first U.S. semiconductor facility in Indiana, about two years after unveiling its 2024 investment plan. The fab is slated for full-scale operations in 2H28, with next-generation HBM—HBM4E and HBM5—set to anchor production, the report adds.

Earnings Preview: Record Margins in Sight

Meanwhile, SK hynix is expected to post strong earnings results on April 23th. According to Yonhap News, citing projections from 15 brokerage firms, the firm is estimated to have posted KRW 53.89 trillion in revenue and KRW 38.49 trillion in operating profit for 1Q on a consolidated basis—surging 205.5% and 417.3% year over year, respectively.

The report cites ASP expansion as the key driver, adding that DRAM and NAND prices are estimated to have jumped by up to 70% QoQ. In particular, the ramp-up of high-value products such as HBM3E is expected to lift DRAM operating margins to as high as 70–80%, according to Yonhap.

On the other hand, SeDaily reports that SK hynix’s first-quarter operating profit is projected to reach around KRW 40 trillion, which implies an operating margin above 70%—a record high.

Read more

• [News] SK hynix Reportedly Breaks Ground on First U.S. Advanced Packaging Plant in Indiana, Eyes 2H28 Production
• [News] Qualcomm CEO in Korea, May Tap Samsung’s 2nm for Snapdragon 8 Elite 2; Meets SK hynix for Memory

(Photo credit: SK hynix)