An infographic shows SK hynix’s plans to expand AI memory production across South Korea, including major investments in Yongin, Cheongju and the southwestern region, along with a review of its back-end plant in Chongqing, China. The bottom image is a rendering of the Yongin Semiconductor Cluster in Gyeonggi Province. Data from SK hynix. Graphic by Asia Today and translated by UPI
Aug. 9 (Asia Today) — SK hynix is rapidly expanding its manufacturing base in South Korea as the chipmaker prepares for continued growth in global demand for artificial intelligence memory through the end of the decade.
The company is increasing capacity for high-bandwidth memory, DRAM, NAND flash and advanced semiconductor packaging across its major production sites while preparing another large-scale manufacturing hub in southwestern South Korea.
Industry research firm Omdia forecasts demand for DRAM and NAND memory to grow at an average annual rate of about 19% through 2030.
SK Group Chairman Chey Tae-won has also said he expects the global shortage of memory chips to continue through 2030.
That outlook is driving SK hynix to expand production capacity at several locations simultaneously.
Yongin becomes long-term DRAM and HBM production base
In Yongin, south of Seoul, SK hynix is focused on securing large-scale manufacturing capacity for long-term memory demand.
The company plans to build four semiconductor fabrication plants, or fabs, in phases at the Yongin Semiconductor Cluster.
Construction is underway on the first fab, known as Y1, while preparations are moving forward for subsequent facilities.
SK hynix plans to invest about 600 trillion won, or approximately $407 billion, in Yongin over the long term, making the complex a major production center for high-bandwidth memory and next-generation DRAM.
The company’s board Friday approved 35.2 trillion won ($25 billion) in investment for the second phase of the Yongin project through 2031.
Construction of the second fab, Y2, is scheduled to begin in July 2027, with its first cleanroom expected to become operational in June 2029.
The facility is expected to produce advanced DRAM products, including high-bandwidth memory used in AI servers.
Cheongju expands from NAND into AI memory hub
SK hynix is also significantly broadening the role of its Cheongju production base in central South Korea.
Cheongju was historically centered on NAND flash production, but the company is adding capacity for next-generation DRAM, advanced packaging and enterprise solid-state drives.
M15X is being developed as a new DRAM production base after SK hynix accelerated the project in response to rapidly growing AI memory demand.
The company plans to expand production of high-bandwidth memory and other next-generation DRAM products at M15X while linking the facility with nearby packaging and testing infrastructure.
P&T7, which began construction in April, is dedicated to advanced packaging for AI memory products, including high-bandwidth memory.
The facility will handle semiconductor packaging and wafer testing, adding back-end manufacturing capacity to SK hynix’s existing front-end wafer fabrication operations.
SK hynix announced in January that it plans to invest about 19 trillion won, or $12.9 billion, in P&T7.
The company has said Cheongju will become a major center for AI memory production as demand for high-bandwidth memory continues to rise.
NAND capacity will also expand through M17.
SK hynix’s board recently approved 19.1 trillion won, or about $12.9 billion, for the new facility.
Construction of M17 is scheduled to begin in February 2027, with its first cleanroom expected to open in December 2028.
The facility will produce NAND flash memory for applications ranging from personal computers to enterprise and AI servers.
New $271 billion semiconductor hub planned in southwest
SK hynix is also planning a major new production base in southwestern South Korea.
The company plans to invest about 400 trillion won, or approximately $271 billion, in phases to develop a new semiconductor cluster beyond its existing Yongin and Cheongju operations.
The precise location, fab configuration and construction timetable have not yet been finalized.
The company has said rapid growth in AI services could eventually create memory demand that cannot be met by its existing expansion plans alone.
The southwestern project is therefore expected to become another major pillar of SK hynix’s long-term manufacturing network.
Together with planned investments of about 600 trillion won ($407 billion) in Yongin and 100 trillion won ($67.9 billion) in Cheongju, the southwestern project forms part of an approximately 1,100 trillion won ($781.3 billion) long-term domestic semiconductor investment strategy.
Icheon retains research and advanced production role
SK hynix’s headquarters in Icheon, Gyeonggi Province, is expected to retain its role as a major research, development and manufacturing center.
The site operates the M10, M14 and M16 fabs, with M16 serving as a key production base for advanced DRAM.
As new production sites are added elsewhere in South Korea, Icheon is expected to remain an important center for both research and advanced memory manufacturing.
The overall strategy combines continued use of existing facilities with the addition of substantial new manufacturing capacity to respond to rising AI memory demand.
Chongqing sale review separate from South Korea expansion
Separately, SK hynix is reviewing options for its semiconductor packaging and testing plant in Chongqing, China, including a possible sale.
The company stressed that the review of its Chongqing operation is separate from the expansion of production capacity in South Korea.
“Nothing has been decided, and we may ultimately decide not to sell it,” an SK hynix official said. “It is one of several options being considered as part of our global fab operations.”
The official said the company’s new investments in South Korea are intended to secure additional production capacity.
The Chongqing facility handles semiconductor packaging and testing, the back-end manufacturing processes that prepare chips for final use.
SK hynix’s expansion strategy reflects the increasingly important role of high-bandwidth memory and other advanced memory products in AI computing, where rapidly growing server deployments are driving demand for both processing power and memory capacity.
— Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260810010002802
