Seoul: Memory chip giant SK Hynix has unveiled plans to invest 9.4 trillion Korean won ($6.8 billion) in constructing a new semiconductor manufacturing plant in South Korea. The facility will be located in the Yongin Semiconductor Cluster, an emerging chip hub just south of Seoul, where the South Korean government aims to develop a major complex for chip operations.
This new fabrication plant, or "fab," will be SK Hynix's first in the Yongin cluster. Construction is set to begin in March next year, with the project expected to be completed by May 2027. SK Hynix, one of the world's top three memory chip manufacturers, produces chips used in a wide range of devices, from laptops to servers. The company has recently found success with its high-bandwidth memory, which it supplies to Nvidia.
Earlier this year, SK Hynix committed 120 trillion won to establish four fabs in the Yongin cluster, with the remaining three to be developed later. This substantial investment highlights both SK Hynix's and the South Korean government's efforts to maintain the country's leadership in memory chip technology, which is crucial for artificial intelligence applications. The South Korean government has pledged billions of dollars to support its semiconductor industry, recognizing the strategic importance of this technology.
South Korea is also home to Samsung, the world's largest memory chip maker. SK Hynix has been benefiting from the AI boom and its partnership with Nvidia, recently reporting its highest second-quarter profit in six years.
FIRST Business Portal addressing the potential of business capability of North East Region.
