Nvidia Supplier SK Hynix to Invest $6.8 Billion in South Korea Semiconductor plant

SK Hynix, one of the largest semiconductor companies in the world, announced that it had decided to invest about USD 6.8 billion for its first semiconductor plant in the South Korean city of Yongin. SK Hynix supplies mainly to Nvidia, one of the world's top fabless companies.

SK Hynix Semiconductor Plant Yongin: Concept

SK Hynix has been planning investments in four new chip plants at a semiconductor cluster near Seoul since 2019. Yongin Cluster is expected to increase the competitiveness of the Korean semiconductor industry and contribute to revitalizing the economy.

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Furthermore, SK Hynix plans to start construction in March next year and complete it in May 2027. Prior to this, the company received investment approval from the board of directors. The company will build the facility to lay the foundation for its future growth and respond to the rapidly increasing demand for AI memory semiconductors.

The company will produce next-generation DRAMs, including HBM. The company recently secured a supply agreement with Nvidia for HBM chips. In addition, SK Hynix plans to build a “Mini-fab2” within the first phase to help small businesses develop, demonstrate, and evaluate technologies.

Through the Mini-fab, the company will provide small business partners with an environment similar to the actual production site so that they can improve technological perfection as much as possible. Apart from this, Nvidia plans to strengthen its chip manufacturing presence in Japan.

Details About Yongin Cluster

The Yongin Cluster, which will be built on a 4.15 million square meter site in Wonsam-myeon, Yongin, Gyeonggi Province, is currently under site preparation and infrastructure construction. SK Hynix has decided to build four state-of-the-art fabs to produce next-generation semiconductors and a semiconductor cooperation complex with more than 50 small local companies.

Scope of the Investment

The USD 6.8 billion investment will be used to pay for the construction costs necessary for the cluster's initial operation, including auxiliary facilities, business support buildings, welfare facilities, and the first fab. The investment period was planned from August 2024 to the end of 2028.

Read: Top Upcoming Semiconductor Projects in India

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