South Korean semi-conductor company SK hynix has acknowledged the growing demand for memory in the AI era.
DRAM and NAND demand, as per market research firm Omdia, are projected to maintain a compound annual growth rate (CAGR) of 19% from last year through 2030.
SK hynix views this growth not as a temporary super cycle, but as a structural transformation in which memory transcends its role as a mere component to become core infrastructure determining AI performance itself.
As such, it has approved an investment of around USD 24.77 billion to build new fabs in Yongin and Cheongju.
This investment will secure future growth foundations while strengthening the competitiveness of the domestic semiconductor ecosystem and boosting local economies.
The large-scale simultaneous investments in Yongin and Cheongju are anticipated to expand joint growth opportunities for supply chain partners, generate employment, and revitalize local commercial districts, thereby contributing to the sustainable growth of the national economy.
Under its master plan to invest USD 422.3 billion Semiconductor Cluster and USD 70.4 billion to expand its Cheongju production base, SK hynix is currently constructing its first fab in Yongin (Y1).
With this latest decision, the company is embarking on the construction of subsequent fabs in both Yongin and Cheongju.
SK hynix and AI
SK hynix stated that in the AI era, technological competitiveness alone is not enough and the ability to supply the required volume at the exact moment customers need it is the ultimate competitive advantage. It has reached this investment decision after a thorough review of market demand.
Yongin Y2 is the second of four fabs planned sequentially for the Yongin Semiconductor Cluster. It will serve as a DRAM production base spanning a total floor area of approximately 1,130,000m².
Construction is scheduled to break ground in July next year, targeting the opening of its first cleanroom in June 2029 to produce high-bandwidth memory (HBM) and other next-generation DRAM products. Meanwhile, construction on Y1 is progressing smoothly toward its initial cleanroom opening target of February 2027.
SK hynix selected Cheongju as its new NAND fab base because it offers the fastest fab construction timeline. The Cheongju Campus already houses the M11, M12, and M15 fabs, enabling efficient production linked to existing operations on sites equipped with substantial pre-established power and water infrastructure.
The company plans to proactively secure production infrastructure based on mid-to-long-term demand discussed with customers, while expanding actual production capacity in alignment with the timing of customer needs.
Fabs will be constructed according to the master schedule, whereas cleanroom expansions and equipment installation will take place sequentially in line with demand trends to maximize capital efficiency.
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