Nvidia supplier SK Hynix to invest US$6.8 billion in chip plant at Yongin, South Korea
THE world’s second-largest memory chipmaker SK Hynix said on Friday (Jul 26) it has decided to invest about US$6.8 billion in its first chip plant and business facilities at a planned semiconductor cluster in Yongin, South Korea.
The Nvidia supplier, which reported on Thursday its highest earnings since 2018 and flagged rising AI chip demand, has been planning investment since 2019 on four new chip plants at a semiconductor cluster at the site near Seoul.
“The Yongin cluster will be the foundation for SK Hynix’s mid- to long-term growth,” said Kim Young-sik, the firm’s head of manufacturing technology.
The investment aims to respond to demand for AI semiconductors and secure future growth, SK Hynix said in a regulatory filing.
The sprawling 4.2 million sq m site, will eventually house the company’s four planned chip plants producing next-generation semiconductors as well as more than 50 small local firms in the chip industry, SK Hynix said in a statement.
Friday’s figure is expected to cover work on the first plant until end-2028, for utilities such as water and electricity, as well as business support and welfare facilities.
It will include a “mini-fab”, or research facility that can process 300-mm silicon wafers, to allow domestic chip materials and equipment makers to test their products in a realistic setting, the company said.
The news follows the company’s plan, unveiled in April, to invest about US$3.87 billion for an advanced packaging plant and research and development facility for AI products in the US state of Indiana. REUTERS
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