SK Hynix invests $90 billion to build new semiconductor production facilities

As one of the largest semiconductor companies in the world, SK Hynix has recently emerged from the shadow of a lackluster memory market in 2023, riding the wave of Artificial Intelligence (AI) and High-Performance Computing (HPC). With its HBM and DDR5 offerings, SK Hynix is swiftly moving towards a brighter future, anticipating substantial growth.

According to a report by ComputerBase, SK Hynix has invested a minimum of 120 trillion South Korean won (approximately 90.7 billion USD) in constructing a new semiconductor manufacturing complex in Yongin, a city in the central part of Gyeonggi Province, South Korea. This ambitious project includes four independent wafer fabrication plants, with a third of the preliminary groundwork already completed.

The plans for erecting the world’s largest chip manufacturing facility were announced by SK Hynix back in 2019. However, due to various reasons, the project experienced delays until a breakthrough agreement was reached with the central and local governments of South Korea in 2022, propelling the project forward. SK Hynix aims to commence construction in March 2025, with the completion of the first wafer fabrication plant expected by 2027. The entire complex is projected to be fully operational by 2046. While it remains uncertain whether the inaugural fab will produce DRAM or NAND flash memory chips, the surging demand for HBM products in the AI market and the resulting capacity constraints at SK Hynix suggest that HBM production might be the chosen path.

It’s understood that the four wafer fabs will occupy half of the complex, and SK Hynix plans to build an extensive range of supporting facilities, including a wastewater treatment plant. In addition to SK Hynix, Samsung has also opted to construct a similar semiconductor manufacturing complex nearby, which will include a research and development center.