SK Hynix Announces KRW 1,100 Trillion Investment

According to SK Hynix, the rapid advancement of artificial intelligence (AI) is driving unprecedented demand for advanced memory solutions across multiple industries. As AI workloads continue to expand, the global memory semiconductor market is experiencing significant supply pressure, with demand increasingly outpacing available production capacity.

To address these market dynamics, SK Hynix has announced a long-term investment strategy totaling KRW 1,100 trillion (approximately USD 800 billion), covering major semiconductor developments in Yongin, Cheongju, and South Korea’s southwestern region. The company plans to invest KRW 600 trillion in Yongin, KRW 100 trillion in Cheongju, and KRW 400 trillion in the southwestern region through phased development programs.

As part of its strategy to meet surging DRAM demand, SK Hynix is accelerating the construction schedule of the Yongin Semiconductor Cluster. The company now aims to complete its fourth fabrication facility (fab) by 2033—12 years ahead of the original 2045 target. Combined investments in manufacturing infrastructure and production equipment are expected to bring the total investment in the Yongin cluster to KRW 600 trillion.

In addition to expanding DRAM production, SK Hynix plans to strengthen its NAND flash memory manufacturing capabilities. The company will invest KRW 100 trillion in Cheongju to build new NAND flash fabrication facilities, install advanced manufacturing equipment, and expand advanced packaging capacity for High Bandwidth Memory (HBM) backend processing. These initiatives are expected to further establish Cheongju as an integrated semiconductor manufacturing hub encompassing NAND flash, HBM production, and advanced packaging technologies.

SK Hynix also intends to invest KRW 400 trillion in developing a new semiconductor cluster in South Korea’s southwestern region. The phased investment will cover land acquisition, fab construction, and equipment deployment. The region is expected to provide the large-scale industrial space and supporting infrastructure required for the company’s next-generation manufacturing operations, including stable access to electricity and water resources.

The investment strategy highlights SK Hynix’s commitment to addressing the rapid growth of global AI-driven memory demand. Building on its established manufacturing bases in Icheon and Cheongju, the company is expanding its production footprint into Yongin and preparing further expansion into the southwestern region to support future growth opportunities.

SK Hynix stated that these large-scale investments are expected to strengthen South Korea’s position as a leading AI and semiconductor powerhouse while supporting the continued development of the global AI ecosystem.