SK hynix to Investment $6.8 billion for construction of FAB and Semiconductor Cluster

SK hynix, a supplier of high bandwidth memory (HBM) chips to Nvidia, has announced a $6.8 billion investment to construct a new chip manufacturing plant in Yongin, South Korea. Construction is set to commence in March 2025, with completion targeted for May 2027.

This investment is part of SK hynix’s broader plan to invest 103 trillion won (approximately $74.8 billion) by 2028 to strengthen its position in the chip industry.

SK hynix’s board has approved an investment plan of 9.4 trillion won (approximately $6.8 billion) for the construction of the first fabrication plant (fab) and business facilities within the Yongin Semiconductor Cluster. This marks a significant step in SK hynix’s long-term growth strategy and response to the burgeoning demand for AI memory semiconductors.

Key points of the plan include:

Construction of the fab is slated to begin in March 2025, with completion targeted for May 2027. The overall investment period spans from August 2024 to the end of 2028.

The Yongin Cluster aims to become a global hub for AI semiconductor production, producing next-generation semiconductors.

Collaboration: The cluster will include a semiconductor cooperation complex accommodating over 50 small local companies, fostering collaboration and innovation within the industry.

Overall, SK Hynix plays a crucial role in the global semiconductor industry, particularly in the booming AI sector. Its focus on advanced memory solutions and commitment to innovation has positioned it as a major player in the market.

Recently SK Hynix Reported: SK Hynix, a major supplier of memory chips for Nvidia, recently reported its highest quarterly profit in six years, driven by the surging demand for artificial intelligence (AI) technology. SK Hynix reported a 5.47 trillion won ($3.96 billion) operating profit for the April-June quarter, a stark contrast to the 2.9 trillion won loss a year earlier.

 

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