Seoul: SK hynix Inc. announced on Friday a significant investment of 54.3 trillion won (US$38.3 billion) to establish new semiconductor fabrication plants, responding to the increasing demand for artificial intelligence (AI) memory chips.

According to Yonhap News Agency, the investment, approved at a recent board meeting, allocates 35.2 trillion won for the Y2 fab in Yongin and 19.1 trillion won for the M17 fab in Cheongju. This decision is part of SK hynix's mid- to long-term strategy and aligns with the government's "tripolar mega project" initiative introduced by President Lee Jae Myung. This initiative aims to bolster advanced technologies across South Korea, positioning the nation as a leader in the global AI industry.

SK hynix has pledged long-term investments totaling 600 trillion won in the Yongin semiconductor cluster and an additional 100 trillion won to enhance its Cheongju production facilities. The company emphasizes that, in the AI era, having technological competitiveness and the ability to meet customer demands promptly is crucial.

The Y2 fab will be the second of four planned fabs in the Yongin semiconductor cluster. Construction is set to begin in July next year, with the first cleanroom expected to open by June 2029. This facility will focus on producing high-bandwidth memory (HBM) and other next-generation dynamic random-access memory (DRAM) products. Meanwhile, the construction of the Y1 fab is on track, with its cleanroom scheduled to open in February next year.

SK hynix initially planned to complete the Yongin semiconductor cluster by 2045 but has accelerated the timeline to 2033. The Y2 project represents the second phase of this expedited expansion, with investments set to continue until October 2031.

The company selected Cheongju for its new NAND flash memory fab due to its favorable construction timeline. The existing facilities at the Cheongju campus, including the M11, M12, and M15 fabs, provide efficient integration with current production capabilities and infrastructure.