SEOUL, July 22, 2026, 23:08 KST — SK hynix (KRX:000660) is accelerating its investment in artificial intelligence chip packaging, a move that comes as the company's shares reversed an early 9% climb to close lower on Wednesday. The South Korean memory chipmaker announced plans to expedite work on its Cheongju P&T7 packaging facility, with the board approving a budget of 7.0931 trillion won, representing 5.88% of equity.
The decision underscores the growing importance of packaging in AI memory production. P&T7's total budget stands at 19 trillion won, nearly matching the 20 trillion won allocated for the neighboring M15X wafer fabrication plant. By calculation, P&T7's budget amounts to 95% of M15X's, positioning packaging as a capital bottleneck on par with wafer output. The approved sum accounts for 37.3% of P&T7's total announced budget.
SK hynix stated that the overall budget for P&T7 remains unchanged but that it is accelerating expenditure to make cleanroom capacity available earlier. The facility will handle packaging and testing for high-bandwidth memory (HBM) and other AI memory products, with construction targeted for completion by late 2027. The company's M15X cleanroom began operations in October 2025, ahead of schedule, linking wafer manufacturing to final testing.
Shares of SK hynix closed at 1.83 million won on Wednesday, a decline of 0.33%. Earlier in the session, the stock had surged as high as 2.006 million won, up 9.3%, following news regarding an Intel Corp. (NASDAQ:INTC) location in Ohio. SK hynix clarified it had not sought or made a decision on any such acquisition. Over the past five trading days, SK hynix has fallen 13.68%, roughly double the 6.80% decline of Samsung Electronics (KRX:005930) and more than triple the 4.03% drop in the KOSPI index.
Chief Executive Kwak Noh-jung earlier this month highlighted capacity constraints, stating, “Our customer demand continues to go up, while our capacity has limitations.” The accelerated packaging investment is seen as a response to sustained demand from AI customers, including Alphabet Inc. (NASDAQ:GOOGL), which is set to release its quarterly results after the U.S. market close on Wednesday. Market participants are closely monitoring Alphabet’s AI investment plans, which could swiftly alter expectations for memory demand.
SK hynix will announce its second-quarter earnings on July 29 at 09:00 KST. According to a preliminary LSEG SmartEstimate referenced by Reuters, operating profit is estimated at 65.5 trillion won. However, the danger remains that increased spending could outpace a slower AI investment cycle, resulting in higher fixed costs amid softer memory prices.
The approved capital plan provides investors with a clearer indication of SK hynix’s strategic direction. The company now allocates budget for packaging in a manner similar to its wafer fabs, signaling a structural shift in capital allocation toward downstream processes critical for AI chip performance.
