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SK hynix Begins Expanding HBM4 Production Capacity with New Cheongju Packaging & Test Line

SK hynix has begun ramping up production of High Bandwidth Memory (HBM). The company is initiating key equipment investments to bring its Cheongju HBM packaging and test fab online, responding to surging demand in the HBM market.

According to industry sources on the 12th, SK hynix recently began issuing purchase orders (POs) for semiconductor process equipment needed for its Cheongju P&T6 fab. Multiple semiconductor equipment company officials stated, "Initial orders to set up the process line have begun," adding that "equipment delivery will proceed in short order." SK hynix is expected to open the cleanroom as early as March, with equipment installation timed to coincide with that opening.

SK hynix's Cheongju P&T6 is the fab formerly known as M8. It was previously the fab of SK hynix System IC, the company's 8-inch semiconductor foundry subsidiary, but became vacant space after those operations were relocated to Wuxi, China. SK hynix decided in the first half of last year to convert the facility for HBM production. With equipment orders now underway, the company has officially begun building out the HBM line.

These orders are in the form of "initial POs." When assembling a semiconductor production line, a qualification phase is required to verify that everything operates properly, and this equipment installation is for that purpose.

P&T6 is a "back-end" facility for packaging DRAM into HBM and testing the finished product. The equipment orders are largely concentrated on packaging and test equipment.

The materials, parts, and equipment (MPE) industry expects large-scale orders to follow once the P&T6 line qualification is complete, as additional formal production lines will need to be built for mass production. Until now, there have been no large-scale orders in SK hynix's HBM packaging and test segment, due to a lack of available space. When additional equipment investment proceeds at P&T6, the MPE sector is also expected to get some breathing room. Mass production line buildout is anticipated as early as the second half of the year.

SK hynix will also be able to bolster its capacity to meet growing HBM demand. While expanded AI infrastructure investment has increased the need for HBM as an essential memory component, supply has not been able to keep pace. This is why SK hynix is rushing to convert P&T6 for HBM and accelerate the timelines for P&T7, M15X, and its first Yongin fab.

P&T6 is slated to ultimately produce sixth-generation HBM, known as "HBM4." This is the product SK hynix is preparing to supply to NVIDIA, the world's largest AI semiconductor chip company.

An industry official projected, "Once P&T6 is fully operational, SK hynix will gain additional production capacity of approximately 20,000 wafers per month." As of the end of last year, SK hynix's total HBM production capacity is estimated at roughly 150,000 wafers per month.
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