Driven by the AI wave, the memory chip leader is further expanding its capacity layout. SK hynix has announced an investment of approximately 54.3 trillion Korean won (about $38.282 billion) to build two new wafer fabs in Yongin and Cheongju, South Korea, expanding DRAM and NAND production bases. The company plans to gradually increase capacity based on customer demand to meet the growing need for HBM and advanced memory driven by artificial intelligence.
On August 7, according to Yonhap News Agency, the company's board approved an investment of 35.2 trillion Korean won for the second wafer fab in Yongin (Y2) and 19.1 trillion Korean won for the M17 factory in Cheongju. SK hynix stated that in the AI era, the ability to provide the necessary capacity promptly when customers need it is a core competitive advantage.
According to the plan, both factories will complete investment by 2031, with the first cleanrooms expected to begin production sequentially from late 2028 to 2029. This means SK hynix is securing advanced memory capacity for the coming years ahead of time to solidify its leading position in the HBM and next-generation DRAM markets.
Yongin Y2 Focuses on HBM and Next-Generation DRAM
Yongin Y2 is the second wafer fab in SK hynix's Yongin semiconductor cluster plan, with a building area of approximately 341,000 pyeong. Construction is expected to start in July next year, with the first cleanroom set to open in June 2029, primarily for producing HBM and other next-generation DRAM products.
In addition to production facilities, this investment also covers the construction of an R&D complex, employee support facilities, and other auxiliary buildings. Meanwhile, the ongoing construction of the first wafer fab (Y1) in Yongin is progressing smoothly, with the first cleanroom expected to be operational by February next year.
Notably, SK hynix has moved up the overall construction plan for the four wafer fabs in the Yongin semiconductor cluster from the original 2045 to 2033. Currently, the completion rate of infrastructure supporting Y2's operations, such as electricity and water supply for the first phase, has reached 99%.
Cheongju M17 Further Expands NAND Capacity
Another investment will go to the Cheongju M17 factory, with a total investment of 19.1 trillion Korean won. Construction is planned to start in February next year, with the first cleanroom opening in December 2028.
Cheongju has long been the production base for SK hynix's NAND flash memory, currently hosting several factories including M11, M12, and M15. The company stated that the new factory will leverage existing mature infrastructure and manufacturing systems in the area, such as land, power supply, and water supply, to accelerate construction progress and further improve operational efficiency through production synergies.
AI Demand Drives Expansion, but Capacity Deployment Maintains a Steady Pace
Although this investment scale sets a new record, SK hynix has not chosen to release all capacity at once, but continues to adopt a strategy of "infrastructure first, equipment investment on demand."
The company plans to first complete the construction of factories and supporting facilities according to the schedule. The expansion of cleanrooms and investment in production equipment will be gradually advanced based on customer demand and market changes, ensuring supply capacity while controlling capital expenditure efficiency.
This decision is a further implementation of SK hynix's medium-to-long-term investment strategy announced in June this year. According to the plan, the company will invest a total of approximately 600 trillion Korean won in the Yongin semiconductor cluster in the future, and an additional 100 trillion Korean won in the Cheongju production base, to support the continuously growing global demand for memory chips in the AI era.
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