SK hynix will push a mid- to long-term investment strategy totaling 1.1 quadrillion won spanning Yongin, Cheongju and the southwest region to meet growing demand for artificial intelligence (AI) memory. The plan is to speed up expansions at existing production bases while building new plants to maintain leadership in memory supply in the AI era.
SK hynix said on the 29th that it is reviewing a plan to invest 600 trillion won in the Yongin semiconductor cluster, 100 trillion won in the Cheongju production base, and 400 trillion won in a new cluster in the southwest region.
The biggest change is the timeline for building the Yongin semiconductor cluster. SK hynix plans to move up construction, which was originally slated for completion in 2045, and finish building the fourth fab by 2033. Subsequent investments in production facilities and equipment will proceed in phases according to market demand.
Cheongju is expected to play a bigger role as an AI memory production base. SK hynix plans to continue investing in Cheongju to build a new NAND flash fab, bring in production equipment, and strengthen advanced packaging capabilities for high bandwidth memory (HBM) back-end processes. The move is aimed at meeting simultaneous increases in demand for NAND, HBM and packaging as AI data centers spread.
The newly planned cluster in the southwest region will serve as a new production base to meet rising mid- to long-term memory demand. SK hynix believes Yongin and Cheongju alone will not be enough to handle future demand and plans to build a front-end memory manufacturing base in the southwest. Site acquisition, fab construction and installation of production equipment will proceed in stages.
However, the specific location has not yet been decided. The company will comprehensively review the availability of a large site, infrastructure such as power and water, transportation and residential conditions, and select the final site through consultations with the central and local governments.
Surging AI memory demand underpins the investment plan. In particular, HBM requires more wafer production capacity and back-end capability than general DRAM because its through-silicon via (TSV)-based stacked structure increases die size and adds processes that stack multiple chips.
The miniaturization of semiconductor processes is also cited as a reason for expanding investment, as it increases the need for production space. The more advanced the process, the more cleanroom space and production equipment are needed to secure the same output.
SK hynix said the plan is not a lump-sum investment executed in a short period. Investments will be made sequentially over a long period in line with market conditions and demand visibility, and funding will be secured through operating cash flow and various financing options.
Icheon will continue to serve as the headquarters and a hub for research and development (R&D) and advanced processes. The company said the investment is not intended to replace existing production bases but to expand the production foundation to meet growing AI memory demand.