DistantNews
Support us
🇰🇷 South Korea /Technology

SK Hynix to invest $40 billion in new semiconductor plants in Yongin and Cheongju

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • SK Hynix will invest 54.3 trillion won to build two new semiconductor plants in Yongin and Cheongju.
  • The investment is part of a larger 1,100 trillion won strategy to expand memory production capacity.
  • The new facilities aim to meet the surging demand for AI memory, including high-bandwidth memory (HBM).

SK Hynix is accelerating its massive investment strategy with a decision to spend 54.3 trillion won on new semiconductor plants in Yongin and Cheongju. This move is a direct response to the rapidly growing demand for artificial intelligence (AI) memory, particularly high-bandwidth memory (HBM).

The company's board approved the construction of a second fabrication plant (Y2) at the Yongin semiconductor cluster, requiring an investment of 35.2 trillion won. This facility, spanning 341,000 pyeong, is slated to begin construction in July next year and aims for its first cleanroom completion by June 2029, with full investment concluding by October 2031. It is intended to become a key production hub for next-generation DRAM, including HBM.

This investment is a decision to not miss the opportunity in line with the market's growth speed.

— SK HynixThe company explained its rationale for the significant investment in new production facilities.

Simultaneously, SK Hynix will build a new NAND flash memory plant (M17) at its Cheongju campus, investing 19.1 trillion won. This plant will cover 206,000 pyeong and is scheduled to start construction in February next year, with its first cleanroom opening by December 2028. The new facility will complement existing NAND production lines in Cheongju, bolstering the company's capacity for NAND flash memory. Investment for this project will be phased through April 2031.

These investments are a crucial follow-up to SK Hynix's mid-term investment plan announced in June, which outlines a total investment of approximately 1,100 trillion won across its semiconductor production sites. The company has also advanced its timeline for the Yongin cluster, aiming to complete all four planned fabrication plants by 2033, 12 years earlier than initially scheduled. SK Hynix stated that these proactive measures are essential to seize market opportunities and solidify its position as a key partner in the global AI semiconductor supply chain.

We will establish ourselves as a key partner in AI infrastructure that contributes to stabilizing the global AI semiconductor supply chain through preemptive production base securing.

— SK HynixThe company outlined its strategic goal in expanding its AI semiconductor capabilities.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog