SK Hynix has declared its plan to allocate 19 trillion Korean won (roughly equivalent to $12.9 billion) towards the establishment of an advanced chip packaging facility, named P&T7, in Cheongju, North Chungcheong Province, South Korea. This strategic move is aimed at fulfilling the burgeoning demand for high-bandwidth memory chips (HBM) within the artificial intelligence industry. The construction of the factory is slated to commence in April 2026, with an anticipated completion date by the end of 2027. Once operational, the plant will work in tandem with existing DRAM front-end wafer fabrication facilities to expedite the production of AI memory solutions. SK Hynix projects that the compound annual growth rate of HBM demand will soar to 33% from 2025 to 2030. This substantial investment underscores the company's commitment to capitalizing on the anticipated market expansion and solidifying its position in the AI memory sector.