$38 Billion! SK Hynix to Build Two New Memory Chip Plants, with Capacity to Expand Gradually Based on Customer Demand

Amid the AI boom, the leading memory chip manufacturer is further intensifying its capacity expansion efforts. SK Hynix announced it will invest approximately 54.3 trillion won (about $38.282 billion) to build two new wafer fabs in Yongin and Cheongju, South Korea, expanding DRAM and NAND production bases and gradually increasing capacity according to customer demand to meet the growing need for HBM and advanced memory chips driven by artificial intelligence.

On August 7, according to Yonhap News Agency, the company's board of directors approved an investment of 35.2 trillion won in the second Yongin wafer fab (Y2) and 19.1 trillion won in the Cheongju M17 plant. SK Hynix stated that in the AI era, the ability to promptly provide the required capacity when customers need it is itself a core competitive advantage.

According to the plan, investment in both plants will be completed by 2031, with the first cleanrooms expected to start operations sequentially from late 2028 to 2029. This means SK Hynix is securing advanced memory capacity for the coming years in advance to consolidate its leading position in the HBM and next-generation DRAM markets.

Yongin Y2 Focuses on HBM and Next-Generation DRAM

Yongin Y2 is the second wafer fab in SK Hynix's Yongin Semiconductor Cluster plan, with a construction area of approximately 341,000 pyeong. Construction is expected to begin next July, with the first cleanroom becoming operational in June 2029, primarily producing HBM and other next-generation DRAM products.

In addition to production facilities, this investment covers the construction of a comprehensive R&D center, employee amenities, and other auxiliary buildings. Meanwhile, construction of the first phase of the Yongin wafer fab (Y1), which is currently underway, is progressing smoothly, with the first cleanroom expected to become operational next February.

Notably, SK Hynix has accelerated the overall construction plan for the four wafer fabs in the Yongin Semiconductor Cluster, moving the completion date forward from 2045 to 2033. Currently, the completion rate of infrastructure supporting Y2 operations, such as power and water supply, has reached 99%.

Cheongju M17 Further Enhances NAND Capacity

Another investment will go to the Cheongju M17 plant, with a total investment of 19.1 trillion won. Construction is planned to begin next February, with the first cleanroom opening in December 2028.

Cheongju has long been SK Hynix's NAND flash memory production base, where multiple plants such as M11, M12, and M15 are already located. The company stated that the new plant will fully leverage the existing mature infrastructure and manufacturing systems in the area, including land, power, and water supply, to accelerate construction progress and further improve operational efficiency through production synergies.

AI Demand Drives Expansion, but Capacity Rollout Remains Measured

Although this investment marks a new high in scale, SK Hynix has not chosen to release all capacity at once, but continues to adopt a strategy of "infrastructure first, equipment investment as needed."

The company plans to complete the construction of factory buildings and supporting facilities according to schedule, while the expansion of cleanrooms and investment in production equipment will proceed gradually based on customer demand and market changes. This approach aims to control capital expenditure efficiency while ensuring supply capability.

This decision further implements the medium-to-long-term investment strategy announced by SK Hynix in June this year. According to the plan, the company will cumulatively invest approximately 600 trillion won in the Yongin Semiconductor Cluster and an additional 100 trillion won in the Cheongju production base in the future to support the continuously growing global demand for memory chips in the AI era.

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