SK Hynix announces 54.3 trillion won (~$41 billion) investment in Y2 Yongin and M17 Cheongju HBM/DRAM fabrication plants to expand memory capacity.

SK hynix Inc. announced Friday that it will invest a combined 54.3 trillion won (US$38.3 billion) to build new semiconductor fabrication plants, responding to rapidly growing demand for artificial intelligence memory chips. The investment plan, approved at a board meeting, allocates 35.2 trillion won for the Y2 fab in Yongin, just south of Seoul, and 19.1 trillion won for the M17 fab in Cheongju.

This decision executes SK hynix's mid- to long-term investment strategy and aligns with the government's "tripolar mega project" initiative, announced last month by President Lee Jae Myung to strengthen advanced technologies nationwide and position South Korea as a global industrial powerhouse in the AI era.

Under its long-term investment plan, SK hynix has pledged to invest 600 trillion won in the Yongin semiconductor cluster and 100 trillion won to expand its production base in Cheongju. The company stated: "In the AI era, technological competitiveness alone is not enough and the ability to supply the required volume at the exact moment customers need it is the ultimate competitive advantage."

The Y2 fab will be the second of four planned for the Yongin semiconductor cluster. Construction is scheduled to begin in July 2027, with the first cleanroom expected to open in June 2029 for the production of high-bandwidth memory (HBM) and next-generation dynamic random-access memory (DRAM) products. The Y1 fab is progressing as planned, with its first cleanroom scheduled to open in February 2027.

SK hynix previously announced plans to complete the Yongin semiconductor cluster by 2033, accelerating the original 2045 target by 12 years. The Y2 project represents the second phase of this accelerated expansion, with investment continuing through October 2031.

For the M17 fab in Cheongju, SK hynix selected the location for its shortest construction timeline. The existing Cheongju campus already houses the M11, M12, and M15 fabs, enabling efficient integration with existing production facilities and infrastructure, including power and water supplies.