SK hynix will invest 100 trillion won in the Chungcheong region to build a NAND flash production facility and an advanced packaging base. Citing the spread of artificial intelligence (AI) services, the company sees growing demand not only for high bandwidth memory (HBM) and server DRAM but also for enterprise solid-state drives (SSD) and NAND, and it plans to make Cheongju its new investment base.
Kwak Noh-jung, CEO (president) of SK hynix, attended the "National briefing on the development vision for advanced industries in the Chungcheong region" held at Samsung Display's Asan Campus in Asan, South Chungcheong, on the 2nd and announced the "Semiconductor and AI investment plan for the Chungcheong region." After Kwak's announcement, SK hynix detailed plans through its newsroom to build the Cheongju M17 fab and P&T7, as well as an AI data center in the Chungcheong region.
SK hynix will invest a total of 100 trillion won in Cheongju. It will put 80 trillion won into M17, which will produce NAND, and 20 trillion won into P&T7 and other facilities to bolster advanced packaging. M17 will break ground next year, with the aim of beginning operations in the first half of 2029. P&T7 will be completed by the end of 2027 and serve as an advanced packaging hub.
Kwak said, "Demand for NAND is increasing rapidly, but supply is lacking, making a certain scale of capacity expansion necessary," adding, "Cheongju is the base where we can build a NAND fab the fastest and most efficiently."
Behind the investment is a shift in AI demand patterns. SK hynix said that as AI services move into full swing, demand for HBM and server DRAM is rising, and demand for enterprise SSDs and NAND is also expanding. The company expects the fields where NAND is applied to broaden further as agentic AI and physical AI spread.
Kwak emphasized that building a semiconductor fab requires a large site, stable power and water supplies, and well-timed investment. "Cheongju is connected to the existing Cheongju fabs, enabling efficient production, and much of the site, power, and water is already in place, allowing immediate commencement of fab construction," he said.
Cheongju is SK hynix's existing NAND production base. With this investment, the company plans to grow Cheongju into a semiconductor hub in the Chungcheong region linking NAND, HBM, and advanced packaging. Kwak said, "Through this investment, we will once again establish Cheongju as a core base driving the competitiveness of the Republic of Korea's memory semiconductor industry."
SK Group also presented an AI data center plan at the group level. Along with its semiconductor production bases, SK Group will expand AI computing infrastructure nationwide. Starting with 5 GW, it plans to gradually build AI data centers totaling around 15 GW across the country.
A 1 GW AI data center will be built in the Chungcheong region. Kwak said, "In the Chungcheong region, we will build a 1 GW AI data center and create here an AI industrial ecosystem where semiconductor production and AI computing generate synergy."
SK hynix will colocate semiconductor production and AI data center infrastructure to pursue a structure that links memory supply with AI computing demand. By combining NAND production facilities, advanced packaging, and AI data centers, the aim is to grow the Chungcheong region into one pillar of the AI Semiconductor production and computing ecosystem.
Kwak also mentioned cooperation between the state and corporations. He said, "The Republic of Korea possesses world-leading competitiveness in memory semiconductors," adding, "This competitiveness is the result of decades of cooperation between the state and corporations and the efforts of all the people."
He continued, "SK hynix has achieved many advances in the Chungcheong region related to NAND, HBM, and advanced packaging," adding, "Building on what we have accomplished so far, we will continue to grow the Chungcheong region into the center of global AI innovation."