SK Hynix announced on July 26 that it will invest approximately 9.4 trillion won (approximately $6.9 billion) in building the first plant and office facilities at the Yongin Semiconductor Cluster in Gyeonggi-do. This significant investment aims to bolster the production of next-generation DRAM products, including High Bandwidth Memory (HBM), a leading AI memory product.

The board has decided to invest in the first plant at the Yongin Cluster, which is scheduled to break ground in March 2024 and be completed by May 2027. “The plant will be constructed to timely respond to the rapidly increasing demand for AI memory,” stated SK Hynix.

This announcement follows SK Hynix’s record-breaking performance in the second quarter of this year, where the company achieved sales of 16.4233 trillion won and an operating profit of 5.4685 trillion won, driven by the booming AI memory semiconductor market, including HBM and enterprise SSDs.

The new semiconductor plant will be established on a 4.15 million square meter site in Wonsam-myeon, Cheoin-gu, Yongin-si, Gyeonggi-do. Currently, site leveling and infrastructure construction are underway. SK Hynix plans to build four state-of-the-art plants to produce next-generation semiconductors and establish a semiconductor cluster in collaboration with domestic and international materials, parts, and equipment companies. After constructing the first plant, SK Hynix plans to complete the remaining three plants sequentially through the necessary procedures.

The investment amount includes various construction costs required for the initial operation of the cluster, such as auxiliary facilities, office support buildings, and welfare facilities. The investment period is set from 2024 to the end of 2028, considering the plant design period and the completion of the office support building in the second half of 2028.

SK Hynix plans to produce next-generation DRAM products, including HBM, at the first plant in Yongin. The company will also prepare to produce other products to meet market demand that may arise at the time of the plant’s completion.

In addition to the main production facilities, a “mini fab” (semiconductor production line) will be established to assist domestic small and medium-sized enterprises in developing, demonstrating, and evaluating technologies. This research facility, equipped with 300mm wafer (semiconductor wafer) processing equipment, will provide an environment similar to actual production sites to help partner companies enhance their technology completeness.

The Yongin Semiconductor Cluster is a large-scale industrial complex in Gyeonggi-do, South Korea, dedicated to semiconductor manufacturing. This cluster’s development is significant to South Korea’s economy and technological infrastructure, as the country is a major player in the global semiconductor market, with companies like Samsung and SK Hynix leading the industry.