[News] SK hynix Approves USD 6.8 Billion Investment for its First Fab in Yongin, Targeting Next-gen DRAMs

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South Korean memory giant SK hynix announced on July 26th that it has decided to invest about 9.4 trillion won (approximately USD 6.8 billion) in building the first fab and business facilities of the Yongin Semiconductor Cluster after the board resolution today, according to its press release.

The company plans to start the construction of the fab in March next year and complete it in May 2027, while the investment period was planned to start from August 2024 to the end of 2028, SK hynix states.

The company will produce next-generation DRAMs, including HBM, at the 1st fab prepare for production of other products in line with market demand at the time of completion.

“The Yongin Cluster will be the foundation for SK hynix’s mid- to long-term growth and a place for innovation and co-prosperity that we are creating with our partners,” said Vice President Kim Young-sik, Head of Manufacturing Technology at SK hynix. “We want to contribute to revitalizing the national economy by successfully completing the large-scale industrial complex and dramatically enhancing Korea’s semiconductor technology and ecosystem competitiveness,” according to the press release.

The Yongin Cluster, which will be built on a 4.15 million square meter site in Wonsam-myeon, Yongin, Gyeonggi Province, is currently under site preparation and infrastructure construction. SK hynix has decided to build four state-of-the-art fabs that will produce next-generation semiconductors, and a semiconductor cooperation complex with more than 50 small local companies.

After the construction of the 1st fab, the company aims to complete the remaining three fabs sequentially to grow the Yongin Cluster into a “Global AI semiconductor production base,” the press release notes.

The 9.4 trillion investment approved this time included various construction costs necessary for the initial operation of the cluster, including auxiliary facilities1, business support buildings, and welfare facilities along with the 1st fab.

In addition, SK hynix plans to build a “Mini-fab2” within the first phase to help small businesses develop, demonstrate and evaluate technologies. Through the Mini-fab, the company will provide small business partners with an environment similar to the actual production site so that they can improve the technological perfection as much as possible.

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(Photo credit: SK hynix)