[News] Aiming at AI Opportunities SK Hynix to Build New Plant for HBM Capacity Expansion

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SK Hynix announced on April 24th that it plans to expand production capacity of the next-generation DRAM including HBM, a core component of the AI infrastructure, in response to the rapidly increasing demand for AI semiconductors.

As the board of directors approves the plan, SK Hynix will build the M15X fab in Cheongju, North Chungcheong Province, for a new DRAM production base, and invest about 5.3 trillion won for fab construction.

SK Hynix plans to start construction at the end of April with an aim to complete in November 2025 for an early mass production. With a gradual increase in equipment investment planned, the total investment in building the new production base will be more than 20 trillion won in the long-term.

With the advent of the AI era, the semiconductor industry believes that the DRAM market has entered a mid- to long-term growth phase. Along with HBM, which is expected to grow more than 60% annually, SK Hynix forecasts that demand for general DRAM will be on a steady rise led by high-capacity DDR5 module products for servers.

As HBM requires at least twice as large capabilities to secure the same production as general DRAM products, SK Hynix decided that increasing DRAM capabilities with a focus on HBM is a precondition for future growth.

The company plans to produce new DRAM from the M15X in Cheongju before the completion of the first fab in Yongin Semiconductor Cluster in the first half of 2027. Being located near the M15, which has been expanding TSV capabilities, the M15X is the best conditioned for optimization of HBM production.

Separately, SK Hynix will proceed with other domestic investments including the Yongin Semiconductor Cluster, where it will to inject approximately 120 trillion won, as planned.

The Yongin project is gaining speed with the process rate for groundwork marking 26%, which is 3% faster than the target. Major preparatory works including land compensation procedures and investigation of cultural properties have been completed, and construction of the infrastructure ranging from power and water to roads is also gaining speed. The company plans to start construction of the first fab in Yongin in March next year and complete it in May 2027.

(Photo credit: SK Hynix)