SK hynix Approves $87 Billion Investment in Yongin Semiconductor Cluster

SK hynix to invest 9.4 tril. won in 1st fab in Yongin chip cluster

This undated file photo shows the construction site for SK hynix Inc.'s planned semiconductor cluster in Yongin, Gyeonggi Province. Yonhap SK hynix announced Friday a plan to invest 9.4 trillion won ($6.8 billion) in building its first fab and relevant facilities at an envisioned semiconductor cluster in Yongin, south of Seoul. The world's No. 2 memory chip maker said its board approved of the investment plan for the semiconductor cluster, which it aims to nurture into a key production base for artificial intelligence (AI) memory chips. SK hynix plans to begin construction of the first chip plant in March next year and complete it by May 2027. It will also build three additional fabs in the 4.15 million-square-meter cluster. "We will do our best to build the fab to cement the foundation for our company's future growth and to respond to surging AI chip demand in a timely manner," the company said. The investment amount includes the cost of building the first chip plant, as well as business facilities, such as water treatment facilities, power facilities and offices, according to SK hynix. SK hynix is a key HBM supplier to the U.S. AI chip giant Nvidia, a major player in the AI semiconductor market with its graphics processing units. SK hynix reported its highest quarterly profit in six years in the April-June period, fueled by solid sales of its premium memory chips used in AI computing. (Yonhap)

SK hynix : Board Approves Yongin Semiconductor Cluster Investment Plan

Yongin Cluster expected to increase the competitiveness of the Korean semiconductor industry and contribute to revitalizing the economy SK hynix Inc. (or "the company", www.skhynix.com) announced today that it has decided to invest about 9.4 trillion won in building the first fab and business facilities of the Yongin Semiconductor Cluster after the board resolution on the 26th. SK hynix designs to start construction of the 1st fab to be built in the Yongin cluster in March next year and complete it in May 2027, and have received an investment approval from the board of directors prior to it. The company will make every effort to build the fab to lay the foundation for the company's future growth and respond to the rapidly increasing demand for AI memory semiconductors. 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 amount of investment approved this time included various construction costs necessary for the initial operation of the cluster, including auxiliary facilities, business support buildings, and welfare facilities along with the 1st fab. The investment period was planned to be from August 2024 to the end of 2028, considering the design period to prepare for fab construction and the business support building scheduled to be completed in the second half of 2028. Auxiliary facilities: Water treatment facilities, communal areas (facilities that can jointly accommodate underground facilities such as wires, communication lines, water supply and sewage pipes, heat transfer pipes), substation facilities, warehouses, etc. The company will produce next-generation DRAMs, including HBM, a representative AI memory, at the 1st fab prepare for production of other products in line with market demand at the time of completion. In addition, SK hynix plans to build a "Mini-fab" 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. Mini-fab: Research facility equipped with 300mm wafer processing equipment to demonstrate semiconductor materials, parts, and equipment "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." SK hynix Inc., headquartered in Korea, is the world's top tier semiconductor supplier offering Dynamic Random Access Memory chips ("DRAM"), flash memory chips ("NAND flash") and CMOS Image Sensors ("CIS") for a wide range of distinguished customers globally. The Company's shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about SK hynix is available at www.skhynix.com, news.skhynix.com.