In response to surging artificial intelligence demand, SK Hynix plans to continue investing an average of over 100 trillion won annually in South Korea for the next decade.
SK Hynix Inc (KRX: 000660) has announced a monumental 1100 trillion won investment to expand semiconductor supply, as declared by SK Group Chairman Chey Tae-won at a major national strategy presentation on June 29.
Chey Tae-won stated that the explosive growth in AI demand is driving an exponential increase in the need for memory semiconductors. The market is already facing a severe supply shortage, which is expected to intensify in the future.
To address this, SK Hynix has decided to invest approximately 600 trillion won in the Yongin semiconductor cluster to expand DRAM (Dynamic Random Access Memory) production capacity. An additional 100 trillion won will be invested in Cheongju to boost NAND (flash memory) output. The construction of the Yongin cluster, originally slated for completion by 2045, will now be finished 12 years ahead of schedule.
Concurrently, the company plans to invest around 400 trillion won to establish a new semiconductor industrial complex in South Korea's southwest region, an area identified as having the necessary conditions for development.
"We plan to invest approximately 1000 trillion won in AI data center projects and about 1100 trillion won in semiconductor supply chain expansion projects," Chairman Chey said. He confirmed that identified AI demand is exceptionally strong, prompting SK's strategy for sustained domestic investment exceeding 100 trillion won per year over the coming ten years.
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