SK Hynix invests 54 trillion won (~$38B) in new semiconductor facilities at Yongin Y2 cleanroom and Cheongju, expanding HBM production capacity.

SK Hynix's board of directors approved a combined 54 trillion Korean won in capital investments to expand semiconductor production capacity. The company will invest 35.2 trillion won for the Y2 fab in the Yongin Semiconductor Cluster and 19.1 trillion won for the M17 facility in Cheongju, both DRAM and NAND production plants respectively. These investments finalize the specific investment scales and construction timelines outlined in the company's mid-to-long-term plan announced last June.

The Y2 facility will serve as a DRAM production complex with a total floor area of 341,000 pyeong (approximately 1.127 million square meters). Construction begins in July 2027, with the first clean room operational by June 2029. The facility will produce next-generation DRAM including HBM (High Bandwidth Memory), with the full investment period extending through October 2031. This encompasses not only the production facility but also support buildings, office and welfare facilities, an integrated research and development center, and auxiliary infrastructure including water treatment and substations.

SK Hynix is simultaneously constructing Y1, the cluster's first fab, targeting first clean room operations in February 2027. The Yongin cluster, spanning approximately 1.26 million pyeong (4.165 million square meters) in Wonseon-myeon, Cheoin-gu, Yongin City, has benefited from an accelerated completion schedule—all four planned fabs now targeted for completion by 2033, moved forward from the original 2045 timeline.

The M17 facility in Cheongju will focus on NAND flash production with a total floor area of 206,000 pyeong (approximately 681,000 square meters). Construction begins in February 2027 with the first clean room opening in December 2028, with the full investment period through April 2031. SK Hynix noted that existing NAND production facilities in Cheongju (M11, M12, M15), combined with already-secured land and infrastructure for power and water supply, will enable efficient rapid construction.

The company intends to secure production infrastructure based on mid-to-long-term demand forecasts while phasing clean room expansions and equipment installations according to actual memory demand, balancing capacity growth with investment efficiency.

Market research firm Omdia projects DRAM and NAND demand will grow at annual average rates of 19% and 10% respectively through 2030, driven by AI-driven demand for HBM and growing enterprise SSD adoption.