SK hynix’s jaw-dropping $6.8bn bet on Yongin’s future could revolutionize the semiconductor industry

In a bold move set to reshape the global semiconductor landscape, SK hynix Inc. has announced a staggering investment of approximately 9.4 trillion won (about $6.8 billion) for the construction of its inaugural fabrication plant and associated business facilities at the Yongin Semiconductor Cluster. This decision, ratified by the board of directors on July 26, 2024, underscores the company’s commitment to addressing the surging demand for artificial intelligence (AI) memory semiconductors.

Groundbreaking Plans for Yongin Semiconductor Cluster

SK hynix is poised to commence construction of the first fabrication facility at the Yongin Cluster in March 2025, with a projected completion date of May 2027. This extensive investment aims to establish a robust foundation for future growth and to cater to the burgeoning need for advanced AI memory solutions. Located on a 4.15 million square meter site in Wonsam-myeon, Yongin, Gyeonggi Province, the Yongin Cluster is currently undergoing site preparation and infrastructure development.

The cluster will feature four state-of-the-art fabrication plants dedicated to producing next-generation semiconductors. Additionally, a semiconductor cooperation complex is planned to house over 50 small local enterprises, fostering innovation and collaboration within the industry.

Investment Breakdown and Project Timeline

The approved investment encompasses various essential construction costs, including those for auxiliary facilities, business support buildings, and welfare amenities. The investment period is scheduled from August 2024 to the end of 2028, covering the design and construction phases. The first fab is expected to spearhead the cluster’s operations, with subsequent fabs to be completed sequentially to solidify the Yongin Cluster’s status as a global hub for AI semiconductor production.

The initial fab will focus on manufacturing cutting-edge DRAMs, including High Bandwidth Memory (HBM), a crucial component for AI applications. Additionally, a “Mini-fab” will be integrated into the first phase to assist small businesses in technology development and evaluation. This research facility, equipped with 300mm wafer processing equipment, will simulate real production environments, enhancing technological precision for small business partners.

Strategic Vision and Economic Impact

Kim Young-sik, Vice President and Head of Manufacturing Technology at SK hynix, emphasized the strategic importance of the Yongin Cluster. He stated that the cluster would serve as a cornerstone for SK hynix’s long-term growth while promoting innovation and collaborative prosperity with industry partners. The project is expected to significantly contribute to Korea’s semiconductor technology and bolster the national economy through enhanced competitiveness and technological advancements.

About SK hynix

Headquartered in Korea, SK hynix Inc. is a leading global semiconductor supplier, renowned for its Dynamic Random Access Memory (DRAM) chips, NAND flash memory, and CMOS Image Sensors (CIS). The company’s shares are traded on the Korea Exchange, with Global Depository Shares listed on the Luxembourg Stock Exchange. SK hynix’s ambitious investment in the Yongin Semiconductor Cluster highlights its commitment to advancing semiconductor technology and reinforcing its position in the global market.