Memory chip giant SK Hynix announced on Friday plans to invest 9.4 trillion Korean won ($6.8 billion) in constructing a new semiconductor manufacturing plant. The new facility, known as a fabrication plant or fab, will be located in the Yongin Semiconductor Cluster, an emerging chip hub just south of Seoul, South Korea’s capital. This investment marks SK Hynix’s first manufacturing plant in the cluster, with construction expected to start in March next year and completion aimed for May 2027.
| Project | Details |
|---|---|
| Investment Amount | 9.4 trillion Korean won ($6.8 billion) |
| Location | Yongin Semiconductor Cluster, South Korea |
| Construction Start Date | March next year |
| Expected Completion Date | May 2027 |
SK Hynix, one of the world’s top three memory chip makers, supplies chips for various devices, including laptops and servers. The company has recently seen success with its high-bandwidth memory, a product it provides to Nvidia. Earlier this year, SK Hynix committed to investing 120 trillion won to build four fabs in the Yongin cluster, with three additional plants planned for future development.
This significant investment highlights SK Hynix and the South Korean government’s efforts to maintain the country’s leadership in memory chip technology, which is vital for artificial intelligence applications. The South Korean government has also committed substantial financial support to bolster the semiconductor industry, recognizing its strategic importance.
South Korea is home to another major player in the memory chip market, Samsung, the world’s largest memory chip maker. This week, SK Hynix reported its highest second-quarter profit in six years, driven by the rising demand for AI and its partnership with Nvidia.
Featured Image courtesy of THE INVESTOR
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