SK hynix, a prominent memory manufacturer, has unveiled plans to build advanced packaging production lines in South Korea to meet the growing demand.
SK hynix Plans to Invest Up to $13 Billion into Advanced Packaging Lines in South Korea, Alongside Its M15X Fab
Advanced packaging is emerging as one of the significant bottlenecks in the AI supply chain, as companies have based their chip portfolios on this technology, and current production lines are insufficient to meet demand. Technologies like CoWoS enable firms like NVIDIA/AMD to integrate HBM modules directly onto the main compute die. This is why, for memory manufacturers like SK hynix, having sufficient advanced packaging capacity is a necessity. In their latest announcement, SK hynix is now investing heavily in Cheongju, South Korea, for advanced packaging.
Amidst this changing environment, SK Hynix has decided to invest in a new advanced packaging fab, P&T7 , to ensure a stable response to global AI memory demand and optimize production at its Cheongju fab.
This investment is a strategic decision that resonates with the government's policy of balanced regional growth while comprehensively considering supply chain efficiency and future competitiveness.
- SK hynix
The advanced packaging fab, called the P&T7, will be built with a total investment of approximately $13 billion, serving as an "organic linkage" between the company's upcoming M15X DRAM facility. This means that SK hynix now plans to offer a one-stop solution for HBM customers within the Cheongju Techno Valley Industrial Complex. After DRAM modules are manufactured, they will be transferred to advanced packaging lines, where the remaining manufacturing and stacking processes will be carried out.
SK hynix has previously been reported to be building a 2.5D packaging plant in the US, with an investment of almost $4 billion. However, the bigger question here is whether the Korean giant itself has an alternative similar to TSMC's CoWoS. We do know that SK hynix does utilize MR-MUF vertical stacking for its HBM solutions, but when it comes to packaging the entire chip, the company has been reliant on TSMC. The recent investments do indicate that SK hynix looks to increase its competitiveness in the HBM segment by offering its clients a turnkey solution.
The company hasn't disclosed the type of technology these advanced packaging lines would focus on. Still, our best estimate is that SK hynix would likely form a partnership with companies like Amkor or possibly even TSMC by investing the necessary funds to produce advanced packaging products in its facilities. Alternatively, SK hynix could develop a proprietary technology, reducing its reliance on foundry partners.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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