SK Hynix invests $6.8B in South Korea chip plant

SK Hynix, the world’s second-largest memory chip maker and a key Nvidia supplier, will invest 9.4 trillion won ($6.8 billion) for its inaugural chip plant in South Korea. Kim Young-sik, the company’s head of manufacturing technology, explained that this is a strategic investment for the company in response to the surge in demand for AI semiconductors. The ambitious project will involve building four state-of-the-art semiconductor plants near Seoul. The construction is expected to start in March next year, and its completion is slated for May 2027.

The site will span 4.2 million square meters and will house four cutting-edge chip plants and over 50 local firms in the semiconductor sector. The facility will also boast a ‘mini-fab’ research centre for processing 300-mm silicon wafers, offering local chip materials and equipment manufacturers a realistic environment to test their innovations.

Why does it matter?

It is worth noting that this new fab will be set in the Yongin Semiconductor Cluster near Seoul, where the government aims to build a large-scale chip operations complex. As such, SK Hynix’s investment will help supplement the South Korean government’s efforts to sustain its leadership in-memory technology, which is crucial for AI applications.