SK hynix has formally announced plans to build 2 new factories in South Korea at a total cost of approximately ¥6.1 trillion to meet surging demand for AI memory. The sites will be in Yongin and Cheongju, and the investment breakdown for each factory has also been disclosed.
SK hynix, the world's second-largest memory chipmaker, has formally announced plans to invest a total of ₩54.3 trillion (approximately ¥6.1 trillion) to build 2 new semiconductor factories in South Korea in response to AI-driven demand for advanced memory. The new facilities will be the Y2 factory (Fab 2) in Yongin and the M17 factory in Cheongju, and the investment amount for each has been disclosed.
Approximately ₩35.2 trillion is expected to be allocated to the Yongin Y2 factory and ₩19.1 trillion to the Cheongju M17 factory. The company said the investment is intended to meet growing market demand by expanding memory production capacity over the medium to long term. The investment also aims to secure a stable supply of high-capacity memory for AI applications amid tight HBM supply.
Market participants say the investment will not only strengthen SK hynix's technological advantage but could also widen its lead over competitors Samsung Electronics and Micron. The company is also reportedly pursuing large-scale bond purchases in South Korea's bond market as part of its proactive financial management.
Against the backdrop of growing demand in the AI server market and strong expectations for high-value-added memory products such as HBM, these developments are seen as potentially affecting leadership in the South Korean and global memory markets over the next several years.