With the SK Hynix South Korea chip investment, $38 billion will build advanced memory mega-fabs in Yongin and Cheongju for AI tech.
SK Hynix’s board approved 54.3 trillion won ($38.3 billion) in investments through 2031 to expand its domestic chip manufacturing. The funding includes 35.2 trillion won for the second phase of its Yongin fabrication plant and 19.1 trillion won for its M17 plant in Cheongju.
The commitments mark the official rollout of the chipmaker’s broader expansion strategy announced in June, which targets a total long-term investment of 600 trillion won for the Yongin semiconductor cluster and 100 trillion won for Cheongju.
According to SK Hynix, the Yongin “Y2 fab” is the second of four fabrication plants planned for the cluster and will serve as a core production hub for dynamic random-access memory (DRAM) chips. DRAM, which provides high-speed temporary data storage for processors, serves as a critical component in the servers driving the AI boom.
Groundbreaking is scheduled for July next year, with the initial cleanroom expected to open in June 2029 to manufacture High-Bandwidth Memory (HBM) and next-generation DRAM chips. A cleanroom is a strictly controlled environment designed to eliminate airborne particles and contaminants that could damage chips during fabrication.
Meanwhile, the first-phase Yongin fab remains on track, with its initial cleanroom scheduled to open in February next year.
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Separately, SK Hynix plans to break ground on the M17 fab in Cheongju in February next year, targeting a December 2028 opening for its first cleanroom. The Cheongju facility will produce NAND flash memory, which provides long-term data storage for hardware ranging from personal computers to AI data centers.
In a separate regulatory filing, the company confirmed it is “actively reviewing” additional shareholder return measures to boost investor value, with detailed plans expected to be finalized and announced in the third quarter.
