SK hynix will build new semiconductor fabrication plants (fabs) in Yongin, Gyeonggi, and Cheongju, North Chungcheong, to meet growing memory demand in the age of artificial intelligence (AI). It will invest more than 54 trillion won in total to establish a next-generation DRAM production hub, including high bandwidth memory (HBM), in Yongin and to expand NAND production facilities in Cheongju.
SK hynix on the 7th approved investments of 35.2 trillion won for "Y2," the second fab in the Yongin semiconductor cluster, and 19.1 trillion won for "M17" in Cheongju at a board meeting. The total amount投入 for the two fabs is 54.3 trillion won.
The investment is a follow-up to the mid- to long-term investment strategy SK hynix released in June. The company laid out plans to invest 600 trillion won in the Yongin semiconductor cluster and 100 trillion won to expand the Cheongju production base. It is currently building Y1, the first fab in Yongin, and with this decision will move to construct subsequent production facilities in Yongin and Cheongju.
Market research firm Omdia projected that demand for DRAM and NAND will each grow an average of 19% annually from last year through 2030. SK hynix expects that as AI spreads, memory will move beyond a simple component to become core infrastructure determining AI system performance, driving structural growth in mid- to long-term demand.
An SK hynix representative said, "In the AI era, technological competitiveness alone is not enough, and the ability to supply the needed volume at the time customers need it is the real competitiveness," adding, "We decided on this investment after a thorough review of demand."
◇ 35.2 trillion won for Yongin Y2… HBM and next-generation DRAM production
Yongin Y2 is the second production facility among a total of four fabs SK hynix is sequentially establishing in the Yongin semiconductor cluster. It will be built as a DRAM production hub with a total floor area of 341,000 pyeong and will produce next-generation DRAM, including HBM.
SK hynix plans to break ground on Y2 in Jul. next year and open the first cleanroom in Jun. 2029. The investment will be executed in stages through Oct. 2031. Y1, currently under construction, is proceeding with the goal of opening its first cleanroom in Feb. next year. The company set a goal of completing construction of the four fabs by 2033, moving up the completion of the Yongin semiconductor cluster by 12 years from the original target of 2045. Building Y2 is the second step toward that goal.
The 35.2 trillion won investment includes not only the Y2 fab but also the expense to build a "support building" equipped with work and welfare facilities for employees and a "research and development integrated center" that consolidates operation of experimentation, testing, and analysis for developed products. It also covers the expense to build ancillary facilities such as water treatment facilities, common utility tunnels, substation facilities, and warehouses.
The Yongin semiconductor cluster is being developed over about 1.26 million pyeong in Wonsam-myeon, Cheoin-gu, Yongin, Gyeonggi. Phase-one power and water infrastructure required through Y2 operation has reached 99% progress and is entering the final stage. SK hynix plans to build Y2 on schedule by carrying out fab construction in parallel with infrastructure development.
◇ 19.1 trillion won for Cheongju M17… meeting AI NAND demand
In Cheongju, the company will build M17, a NAND production facility. It determined that demand for NAND is rising quickly, centered on enterprise solid-state drives (SSD), as AI services spread.
The "KV cache (KV Cache)" used in AI inference is also cited as a factor expanding NAND demand. KV cache is a technology that reduces the inefficiency of repeating the same calculations by storing and reusing key (Key) and value (Value) data generated from prior computations by the AI model. The company expects that as Agentic AI and Physical AI spread, the areas where NAND is used will expand further.
SK hynix chose Cheongju as the new NAND production base because it can quickly build a fab by leveraging its existing manufacturing foundation. The Cheongju campus already houses M11, M12, and M15, which produce NAND, enabling production linked with existing fabs. Much of the site and power and water infrastructure is also in place.
M17 will be built with a total floor area of 206,000 pyeong. Construction will start in Feb. next year, with plans to open the first cleanroom in Dec. 2028. The 19.1 trillion won investment will be executed in phases through Apr. 2031 in line with the project schedule.
SK hynix will proactively secure production facilities based on mid- to long-term demand discussed with customers, while expanding actual capacity in line with the timing customers need. Fab construction will proceed as scheduled, and subsequent cleanroom expansions and semiconductor equipment installation will follow sequentially according to demand trends.
The company expects the large-scale investments proceeding simultaneously in Yongin and Cheongju to affect Korea's semiconductor ecosystem as well. It expects to expand opportunities for partner companies and contribute to job creation and revitalization of local commercial districts.
An SK hynix official said, "This investment is a decision to keep pace with the market's growth rate and not miss the opportunity," adding, "By securing production capacity in advance, we will establish ourselves as a key partner in AI infrastructure that contributes to stabilizing the global AI Semiconductor supply chain."