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SK hynix to Invest $38.1 Billion in Two New AI Memory Fabs in South Korea

By: IDCNOVARegion: East Asia
SK hynix, a leading South Korean semiconductor manufacturer, has unveiled plans to invest approximately KRW 54 trillion (US$ 38.1 billion) in the construction of two new fabrication facilities in Yongin, Gyeonggi Province, and Cheongju, North Chungcheong Province. The move is a direct response to the surging global demand for advanced memory solutions, particularly high-bandwidth memory (HBM) used in AI data centers and next-generation computing platforms.

According to the company's press release, the investment will allocate KRW 35.2 trillion (US$ 24.8 billion) to the Yongin Y2 fab and KRW 19.1 trillion (US$ 13.4 billion) to the Cheongju M17 fab. These facilities are expected to play a pivotal role in SK hynix's long-term strategy to secure production capacity ahead of market growth and strengthen its position as a key supplier in the AI semiconductor supply chain.

"This investment is a decision made to seize opportunities in line with the market's growth speed. By proactively securing production capabilities, we aim to establish ourselves as a key partner in AI infrastructure, contributing to the stability of the global AI semiconductor supply chain," an SK hynix official said in a statement.

The Yongin Y2 fab will be the second of four fabs planned for the Yongin Semiconductor Cluster. The facility will be dedicated to producing HBM and other next-generation DRAM products. Construction is scheduled to begin in July 2027, with the first cleanroom expected to open in June 2029. The company noted that Phase 1 power and water infrastructure for the Yongin Semiconductor Cluster is 99 percent complete, enabling SK hynix to proceed with the Y2 plans according to schedule. Construction of the Y1 fab is also progressing smoothly, with its initial cleanroom still on track to open in February 2027.

Meanwhile, the Cheongju M17 fab will be integrated into SK hynix's Cheongju Campus, which already houses the M11, M12, and M15 fabs and serves as the company's new NAND fabrication base. Construction at M17 is planned to begin in February 2027, with the first cleanroom expected to be operational by December 2028.

SK hynix has emphasized that it is expanding production capacity in alignment with customer needs. The company builds fabs according to its master schedule, while cleanroom expansions and equipment installations will be adjusted based on demand to maximize capital efficiency. This approach reflects a broader industry trend among memory makers to balance long-term capacity planning with short-term market volatility.

The global memory chip market was valued at US$ 273.1 billion in 2025, and analysts estimate that figure will climb to US$ 805.1 billion by 2034, according to Research and Markets. Memory chip production remains heavily concentrated in Asia-Pacific, with South Korea and Taiwan dominating the sector. SK hynix's latest investment underscores the region's critical role in meeting the world's growing appetite for AI-driven computing power and data storage.