SK Hynix to invest W54tr in new Yongin, Cheongju fabs to accelerate AI memory push

SK Hynix will invest a combined 54 trillion won ($38.1 billion) to build its second fab at the Yongin semiconductor cluster in Gyeonggi Province and a new NAND production facility in Cheongju, North Chungcheong Province.

The company's board approved the investment plan Friday, allocating 35.2 trillion won for the Yongin fab, designated Y2, and 19.1 trillion won for the Cheongju facility, designated M17.

The move aims to rapidly expand production capacity and capture demand ahead of competitors as the AI memory market enters a phase of structural growth.

The decision is part of a medium-to-long-term investment strategy SK Hynix announced in June, under which the company said it would commit 600 trillion won to the Yongin cluster and 100 trillion won to Cheongju to build additional fabs.

Construction on Y2 is set to begin in July next year, with the first clean room scheduled to open in June 2029. The investment period runs through October 2031. The facility will span 1.13 million square meters and produce HBM and other next-generation DRAM chips.

The investment figure covers the cost of a support building — housing work and welfare facilities for employees assigned to Y2 — as well as an integrated research and development center for testing and analyzing products under development, and ancillary infrastructure including water treatment, substation and utility tunnel facilities.

The Yongin cluster will eventually house four fabs, including Y1 and Y2, across approximately 4.16 million square meters. SK Hynix has moved up its completion target by 12 years, from 2045 to 2033. Y1, the first fab, is already under construction and is scheduled to open its first clean room in February next year.

"The first-phase power and water infrastructure needed to bring Y2 into operation is now 99 percent complete," the company said. "Since fab construction and infrastructure development have been proceeding in parallel, Y2 will be built on schedule without disruption."

M17, the new NAND production facility in Cheongju, will cover 679,800 square meters. Construction is set to begin in February next year, with the first clean room slated to open in December 2028. The investment period runs through April 2031, with spending disbursed in stages according to schedule.

SK Hynix decided to expand NAND capacity in response to surging demand — driven primarily by enterprise solid-state drives — as AI services continue to proliferate.

The company already operates three NAND fabs in Cheongju — M11, M12 and M15 — meaning much of the site, power and water infrastructure is already in place. SK Hynix also expects to improve production efficiency by integrating M17 with its existing Cheongju operations.

Through simultaneous large-scale investments in Yongin and Cheongju, SK Hynix plans to secure early the capacity to supply customers when they need it. Fab construction will proceed on the planned schedule, while clean room expansion and equipment installation will follow sequentially in line with demand trends.

The company also expects the investments to broaden growth opportunities for partner firms and contribute to job creation and the revitalization of local economies.

"This investment is a decision to keep pace with the market's growth and not miss the opportunity it presents," a company official said. "By securing a preemptive production base, we will establish ourselves as a core AI infrastructure partner contributing to the stability of the global AI semiconductor supply chain."