South Korean memory chip-maker SK hynix has begun constructing its first chip fabrication plant in the Yongin Semiconductor Cluster following approval from Yongin City, the company said Tuesday.
SK hynix is investing about 9.4 trillion won ($6.56 billion) to build the first fab and business facilities in the government-led chip cluster site, with the goal of completing construction in May 2027. Work began ahead of its planned March start after the city government approved the construction of 19 buildings, including the fab, on Friday.
"The Yongin Campus will serve as a key production hub for next-generation DRAM memory products, including high bandwidth memory, allowing SK hynix to respond to surging demand for AI-driven memory chips and strengthen its long-term growth strategy," SK hynix said in the press release.
The chipmaker plans to build four fabs to produce next-generation chips and a chip cooperation complex with more than 50 small local companies.
"The Yongin Cluster is the most strategically planned project in SK hynix' history. It requires a pioneering mindset beyond our past efforts," SK Group Chairman Chey Tae-won said when he visited the cluster site in September 2023.
Along with the first fab, SK hynix said it plans to build auxiliary facilities including water treatment and substation facilities as well as communal areas to implement wires, water supply, sewage pipes and heat transfer pipes.
The company also plans to build a mini-fab — a research facility equipped with 300-millimeter wafer processing equipment for demonstrations — to offer small business partners opportunities to demonstrate and evaluate their technologies.
"We will continue to provide the necessary administrative support to ensure that the first fab is operational in the first half of 2027 as planned," Yongin Mayor Lee Sang-il said.
The Yongin Semiconductor Cluster is a 4.15 million-square-meter industrial complex being developed in Yongin, Gyeonggi Province.
To meet the growing demand for its leading-edge HBM chips, SK hynix is also constructing the M15X fab in Cheongju, North Chungcheong Province, with completion expected by the end of this year.
herim@heraldcorp.com
