SK Hynix board approves $38 billion investments for South Korea's Yongin, Cheongju chip plants

SK Hynix has greenlit a substantial investment of approximately 54.3 trillion won ($38.30 billion) by 2031, signaling a major expansion of its semiconductor manufacturing capabilities in South Korea. The company's board approved the significant capital outlay, which includes 35.2 trillion won for the second phase of its chip fabrication plant in Yongin and 19.1 trillion won for its M17 plant in Cheongju.

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Y2 fab is the second of four fabrication plants planned for the cluster and will serve as a production base for dynamic random access memory (DRAM) chips.

The Yongin investment is particularly focused on the "Y2 fab," the second of four planned fabrication plants for the cluster. This facility is earmarked to produce dynamic random access memory (DRAM) chips, a critical component powering the current artificial intelligence boom. Construction is slated to commence in July of next year, with the first cleanroom expected to be operational by June 2029, initially producing high-bandwidth memory (HBM) and other advanced DRAM products. The company noted that the first-phase Yongin fab remains on schedule, with its initial cleanroom set to open in February next year.

In parallel, SK Hynix will also invest in its Cheongju facility. The M17 fab there will concentrate on producing NAND flash memory, essential for data storage across a wide range of devices, from personal computers to AI servers. Construction for the M17 plant is scheduled to begin in February next year, and its first cleanroom is anticipated to open in December 2028.

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DRAM, which temporarily stores data ​for processors, is a critical component in the servers ⁠powering the AI boom.

Beyond manufacturing capacity, SK Hynix is also exploring ways to enhance shareholder value. The company stated in a separate regulatory filing that it is actively reviewing additional shareholder return measures and expects to finalize and announce details in the third quarter. This strategic investment plan underscores SK Hynix's commitment to solidifying its position in the global semiconductor market, particularly in memory technologies vital for next-generation computing and AI.

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actively reviewing