SK Hynix to invest $3.86B in DRAM production in South Korea
SK hynix says that it plans to expand production capacity of the next-generation DRAM, including HBM, in response to the rapidly increasing demand for AI semiconductors.
The company says that it will invest about KRW 5.3 trillion (approximately USD 3.86 billion) to build a fab named M15X fab in Cheongju, North Chungcheong Province. Construction is currently scheduled to start at the end of April – with an aim to complete in November 2025 for an early mass production.
With a gradual increase in equipment investment planned, the total investment in building the new production base will be more than KRW 20 trillion (USD 14.5 billion) in the long-term.
SK hynix says in a press release that it expects the expansion in investment to contribute to revitalising the domestic economy, while refreshing Korea's reputation as a semiconductor powerhouse.
The semiconductor industry believes that the DRAM market has entered a mid- to long-term growth phase with the dawn of the AI age. In addition to HBM, which is expected to grow by more than 60% yearly, SK hynix predicts that general DRAM demand is likely to climb steadily, driven by high-capacity DDR5 module solutions for servers.
SK Hynix determined that boosting DRAM capabilities with an emphasis on HBM is a requirement for future growth – since HBM requires at least twice as large capabilities to secure the same production as general DRAM products.
At the future M15X fab in Cheongju, the company plans to produce new DRAM before the completion of the first fab in Yongin Semiconductor Cluster in the first half of 2027. The M15X is said to be in the best conditioned for optimisation of HBM production due to its location close to the M15, which has been increasing TSV1 capabilities.
Separately, SK hynix will proceed with other domestic investments including the Yongin Semiconductor Cluster.
“With transformation into a key facility that supplies AI memories to the world, M15X will play a pivotal role as stepping stone connecting the company’s present and future,” says Kwak Noh-Jung, President and CEO of SK hynix in the press release. “We are confident that this investment will be a giant leap that goes beyond the private sector for contribution to the future of the broader domestic economy.”
