SK Hynix to Invest $6.8 Billion in New Chip Plant in South Korea
SEOUL: SK Hynix, the world’s second-largest maker of memory chips, announced on Friday that it will be investing approximately 9.4 trillion won ($6.8 billion) in its first chip plant located in the South Korean city of Yongin.
The company, a supplier to Nvidia, has seen a surge in demand for AI chips and reported its highest earnings since 2018, prompting the decision to invest in a new facility. The investment is part of SK Hynix’s long-term growth strategy and aims to cater to the increasing demand for AI semiconductors.
The new chip plant will be part of a semiconductor cluster near Seoul, with plans for a total of four new chip plants. SK Hynix’s head of manufacturing technology, Kim Young-sik, stated, “The Yongin cluster will be the foundation for SK Hynix’s mid- to long-term growth.”
The massive 4.2 million sq. m. site will accommodate the four planned chip plants, producing next-generation semiconductors. Additionally, the facility will host over 50 small local firms in the chip industry, creating a thriving ecosystem for semiconductor development.
The investment will cover infrastructure development until end-2028, including utilities such as water and electricity, as well as business support and welfare facilities. A “mini-fab” research facility will also be included to allow domestic chip materials and equipment makers to test their products in a realistic setting.
This news comes after SK Hynix’s recent plan to invest $3.87 billion in an advanced packaging plant and research and development facility for AI products in the United States, showcasing the company’s commitment to innovation and growth on a global scale.
