SK Hynix declared a significant move forward in its expansion plans with a board resolution to invest a staggering 9.4 trillion won, which is roughly equivalent to $67.8 billion, in the establishment of the inaugural fabrication plant and associated business infrastructure within the Yongin Semiconductor Cluster in South Korea.

The company has stated its intention to adhere to the original schedule, commencing the construction of the first fabrication facility in March of the upcoming year, with an anticipated completion date set for May 2027. This investment decision by the board is part of a broader strategy to solidify the company's future growth and to address the escalating demand for semiconductor memory tailored for AI applications.

The Yongin Semiconductor Cluster is strategically located in Wonsam-myeon, Yongin-si, Gyeonggi-do, South Korea, covering an expansive area of 4.15 million square meters. SK Hynix is currently engaged in land development and the construction of foundational infrastructure. The chip giant plans to erect four state-of-the-art fabrication facilities within the cluster, which will serve as a hub for the production of next-generation semiconductor products. In collaboration with over 50 global enterprises specializing in materials, components, and equipment, SK Hynix is set to forge a semiconductor partnership park.

Following the completion of the first fabrication facility, SK Hynix will proceed in sequence with the construction of the remaining three facilities, with the vision of transforming the Yongin Cluster into a "global hub for artificial intelligence semiconductor production."

The investment figure approved by the board encompasses a variety of construction costs required for the initial operation of the cluster, including the first fabrication facility, ancillary facilities, office buildings, and service facilities. Taking into account the time needed for the design preparation for the plant construction and the planned completion of the office building in the second half of 2028, SK Hynix has set the investment period from August 2024 to the end of 2028.

The company intends to manufacture AI-oriented memory represented by HBM and new-generation DRAM products at the Yongin facility, with readiness to produce additional products based on market demand at the time of completion.

In addition, SK Hynix plans to construct a 'Mini Fab' within the first fabrication facility to support domestic Korean companies in their technology research, development, verification, and evaluation. The Mini Fab will provide an environment akin to an actual production site, thereby substantially aiding partners in enhancing the maturity of their proprietary technologies.

The Vice President of Manufacturing Technology at SK Hynix, Young-sik Kim, expressed that the Yongin Cluster will serve as the foundation for SK Hynix's medium to long-term development and will be a space for innovation and mutual benefit, built in collaboration with partner companies. Through the successful completion of the large-scale industrial park construction, SK Hynix aims to strengthen the competitiveness of South Korea's semiconductor technology and ecosystem, contributing significantly to the nation's economic development.