According to sources, memory chip giant SK hynix plans to invest 9.4 trillion won ($6.8 billion) to build a new semiconductor manufacturing plant in Korea's emerging chip SMIC.
According to SK hynix's official statement, the new factory will be located in the Yongin semiconductor cluster south of Seoul, one of the high-tech areas that the Korea government is focusing on. Construction of the plant is expected to begin in March 2025 and be completed and put into operation in May 2027. This investment is not only SK hynix's first factory in the Yongin semiconductor cluster plan, but also an important part of its global strategic layout.
The main purpose of SK hynix's investment is to meet the growing demand for high-performance chips, especially in the field of artificial intelligence (AI). As a key supplier to tech giants such as NVIDIA, SK hynix has made significant achievements in high-bandwidth memory (HBM) technology, which is critical for AI computing performance. The new plant will mainly produce AI-oriented memories such as HBM, as well as next-generation DRAM products, which will help SK hynix further strengthen its leading position in the global AI chip market.
In addition to producing high-performance chips, the new facility will include a "microfab," a state-of-the-art facility for research and development of 300mm silicon wafers. This initiative will promote the development of Korea's local chip materials and equipment manufacturers, enabling them to test and optimize their products in a real-world environment, thereby promoting the synergistic development of the entire industry chain.
Pictured: SK hynix will invest $6.8 billion to build a chip factory in Korea
SK hynix's investment is not only a significant contribution to Korea's semiconductor industry, but also part of its global footprint. In recent years, SK hynix has been aggressively expanding its global business, especially in key markets such as the United States. Previously, the company has announced an investment of about $3.87 billion in Indiana, United States, to build an advanced packaging factory and AI product research and development facilities. These investments will enable SK hynix to better serve its global customers and further enhance its competitiveness in the global semiconductor market.
This investment by SK hynix is undoubtedly a positive sign for the semiconductor industry as a whole. With the rapid development of emerging technologies such as artificial intelligence and the Internet of Things, the demand for high-performance chips will continue to grow. As one of the world's leading semiconductor manufacturers, SK hynix's investment will promote technological innovation and industrial upgrading, and promote the development of the entire industry to a higher level.
This investment strategy by SK hynix reflects the company's efforts to maintain its leading position in the memory field, which is critical for AI applications. Seoul has pledged billions of dollars to support its exploration in the semiconductor space, a technology that is increasingly seen as strategic for the government. With the development of emerging technologies such as artificial intelligence, SK hynix has successfully seized the opportunity of AI development through its partnership with NVIDIA, announcing this week that its second-quarter profit reached its highest level in six years and said that the demand for AI chips is rising.
