SK hynix to Invest $15B in Yongin Wafer Fab

On February 25, SK hynix announced via its official website that it will invest 21.6 trillion won (approximately $15 billion) to build its first wafer fabrication plant in the Yongin Semiconductor Cluster, with completion targeted for December 2030.

This latest investment adds to the company's previously announced 9.4 trillion won (about $6.5 billion) commitment made in July 2024 to upgrade existing infrastructure in the same area. As of the end of 2025, the first major building structure—comparable in height to a 50-story tower—has already been erected. Combined, SK hynix's total investment in Yongin will reach approximately 31 trillion won (around $21.5 billion), underscoring its long-term strategy to expand advanced semiconductor manufacturing capacity.

According to SK hynix, the decision reflects a proactive response to rapidly increasing global demand for high-performance semiconductors, driven by emerging technologies such as artificial intelligence (AI), data centers, and high-performance computing (HPC). These applications require higher density memory and faster processing capabilities, prompting the company to scale production capacity earlier than originally planned and establish a stronger foundation for reliable future supply.

The Yongin Semiconductor Cluster itself is expected to see significantly expanded development compared to earlier plans. Under South Korea's Special Act on Strengthening and Protecting National High-Tech Strategic Industries, the allowable floor area ratio for strategic technology facilities has been increased to 1.4 times the previous legal limit. This regulatory change enables larger cleanroom spaces, and the revised investment figure reflects both expanded construction scope and inflation adjustments, excluding equipment installation costs.

Construction activities are now fully underway, with the current phase focused on completing the main structure of the first fab and building cleanrooms for phases two through six. Once completed, the fab will consist of two main buildings and six cleanroom facilities. This configuration is designed to secure scalable production capacity and allow SK hynix to respond more flexibly to evolving customer requirements across memory-intensive applications.

Thanks to efficient project management and strict on-site safety protocols, SK hynix expects to bring its first cleanroom online earlier than planned, advancing the operational timeline from May 2027 to February 2027. This accelerated schedule will help establish a stable operational framework ahead of rising future demand and further strengthen the company's competitive position in the global semiconductor industry.

Beyond production capacity, the investment will also support the development of a broader semiconductor ecosystem within the Yongin cluster. SK hynix plans to collaborate with more than 50 partner companies in materials, components, and equipment (MCE), creating synergies that support innovation, improve supply chain resilience, and enable coordinated growth. The company aims to help transform Yongin into one of the world's largest semiconductor manufacturing hubs, reinforcing South Korea's leadership in advanced semiconductor technologies.