SK hynix approves $39.4 billion plan for new AI memory chip fabs
SK hynix's board approved a 54 trillion won investment for new fabs in Yongin and Cheongju, targeting AI memory demand through 2030.
South Korean semiconductor major SK hynix has given the green light to a massive capital expenditure plan aimed at expanding its production capacity for AI-focused memory chips. The company's board approved an investment of approximately 54 trillion won (USD 39.42 billion) to build new fabrication plants in Yongin and Cheongju.
The investment allocates 35.2 trillion won (USD 25.70 billion) for the Yongin "Y2" facility and 19.1 trillion won (USD 13.94 billion) for the Cheongju "M17" facility. This decision executes a broader manufacturing blueprint announced in June, which outlined a 600 trillion won commitment for the Yongin Semiconductor Cluster and 100 trillion won for the Cheongju production center.
SK hynix is currently building its first Yongin fab (Y1) and will now initiate subsequent construction phases at both hubs. The company frames this expansion as a response to a structural shift in memory demand, driven by AI applications. Citing data from market research firm Omdia, SK hynix projects memory demand across DRAM and NAND sectors to grow at a compound annual rate of 19 percent through 2030.
"In the AI era, technological competitiveness alone is not enough and the ability to supply the required volume at the exact moment customers need it is the ultimate competitive advantage," the company said in a statement.
The Yongin Y2 facility, spanning 341,000 pyeong (approximately 1.13 million square meters), will focus on DRAM production. Groundbreaking is set for July next year, with the initial cleanroom expected to open in June 2029 to produce high-bandwidth memory (HBM) and next-generation DRAM chips. The Y1 fab remains on track for a cleanroom opening in February next year. Investment for Y2 runs through October 2031, covering manufacturing units, an R&D center, and auxiliary infrastructure. Phase 1 utility setup for the Yongin site is 99 percent complete.
For the NAND segment, SK hynix sees rapid demand growth for enterprise solid-state drives and key-value cache storage used in AI inference models. The Cheongju M17 facility will cover 206,000 pyeong (680,000 square meters). Construction begins in February next year, with cleanroom operations targeted for December 2028 and investment running through April 2031.
"This investment is a decision made to seize opportunities in line with the market's growth speed," the company added. SK hynix plans to build facilities according to master timelines while expanding cleanrooms and equipment sequentially to maintain capital efficiency.