SK hynix to build new back-end fab in Cheongju

SK hynix headquarters in Icheon, Gyeonggi Province (Yonhap)

SK hynix, the world’s leading memory chip maker, is reviewing plans to build a new back-end production facility in a bid to strengthen its packaging capabilities amid rising demand for advanced chips.

According to industry sources on Tuesday, the memory chip-maker announced via its internal bulletin board that it will construct the new facility, dubbed “P&T 7,” on a site in Cheongju, North Chungcheong Province. For the new building, the company has begun demolishing a former LG factory it previously acquired on the site, with plans to complete the work by September.

“The role of back-end processes in memory semiconductors is becoming increasingly important as they add significant value beyond traditional manufacturing,” an SK hynix official said. “The company seeks to improve its packaging technology.”

In Korea, SK hynix currently has six P&T buildings, which are its back-end production facilities, in Icheon and Cheongju.

The construction schedule for the seventh building has not yet been decided. However, the site is expected to serve not only as a packaging facility for final products, but also as a test fab.

The back-end process in chipmaking refers to the final stages of chip making, where individual chips are cut from the wafer, tested and packaged into finished products.

As performance gains from semiconductor scaling approach their physical limits, advanced packaging technologies are gaining prominence as a new path to improve performance and power efficiency.