SK Hynix announces $712.5 billion investment in South Korean operations, including new NAND fab and DRAM cluster expansion.

SK hynix this week announced an additional investment of KRW 100 trillion ($64 billion) in its Cheongju campus to expand 3D NAND and HBM packaging operations. However, this substantial commitment is part of an even larger plan to invest KRW 1.1 trillion ($712.5 billion) across various projects in South Korea, encompassing KRW 400 trillion ($259.5 billion) for a new Southwestern semiconductor cluster and KRW 600 trillion ($389.3 billion) for its Yongin site.

The Cheongju investment represents the most detailed of SK hynix's announced projects. The company intends to construct the M17 3D NAND fab and expand advanced packaging capabilities for HBM back-end processing. Construction of the M17 fab is scheduled to begin next year, with operations expected to commence in 2029 at the earliest. The fab is budgeted at approximately KRW 80 trillion ($51.8 billion), while the new P&T7 packaging and test facility is estimated at KRW 20 trillion ($12.945 billion).

Cheongju currently houses SK hynix's primary 3D NAND manufacturing fabs—M11, M12, and M15—and has historically been the company's main NAND production center. The facility has since evolved to produce HBM stacks as well, with M15X producing DRAM dies and P&T3 performing packaging operations.

The Yongin Semiconductor Cluster represents SK hynix's largest investment commitment and will become its primary DRAM production site. The first fab is expected to begin operations in May 2027, with additional fabs to follow sequentially. Since DRAM fabs typically require one to one and a half years to fully ramp, the facility is projected to impact the memory market beginning in 2028–2029. SK hynix has accelerated completion of all four fabs to 2033, advancing the original timeline from 2045. The $389.3 billion investment extends beyond this completion date.

The Southwestern Semiconductor Cluster, budgeted at approximately $259.5 billion, remains in the planning stage with no site yet selected. SK hynix will evaluate land availability, electricity, water, transportation, and other infrastructure requirements in consultation with central and local governments. The cluster is envisioned as the company's next major manufacturing base following Icheon, Cheongju, and Yongin. SK hynix notes that preparations must begin immediately, as developing a new semiconductor cluster—including site selection and infrastructure—requires years. The Yongin Cluster, for example, took approximately nine years to develop.

SK hynix is not alone in expanding domestic capacity. Samsung announced plans Thursday to invest KRW 140 trillion ($90.98 billion) in operations across South Korea's Chungcheong region. Samsung Display will expand OLED production in Asan; Samsung Electronics will build five HBM production lines in Onyang and modernize HBM facilities in Cheonan; Samsung SDI will establish a battery production line in Cheonan to validate next-generation technologies; and Samsung Electro-Mechanics will expand AI server package substrate manufacturing in Sejong.