SK hynix announced on Friday a combined investment of 54.3 trillion won (approximately $38.3 billion) to construct new semiconductor fabrication plants, aiming to meet the surging demand for artificial intelligence (AI) memory chips. The world's second-largest memory chip maker stated in a regulatory filing that the investment plan has been approved by its board of directors.

Of the total, 35.2 trillion won will be allocated to the Y2 fabrication plant in Yongin, south of Seoul, while 19.1 trillion won will be directed toward the M17 plant in the central city of Cheongju. This investment marks the official launch of SK hynix's mid-to-long-term investment strategy, aligning with the South Korean government's "Three Core Mega Projects" plan announced last month by President Lee Jae-myung. The policy aims to comprehensively strengthen cutting-edge technology capabilities, helping South Korea become a global industrial powerhouse in the AI era.

Under its long-term investment blueprint, SK hynix has committed 600 trillion won to the Yongin semiconductor cluster and 100 trillion won to expand the Cheongju production base. In a press release, SK hynix stated: "Entering the AI era, having technological competitiveness alone is not enough. The ultimate competitive advantage lies in the ability to stably supply sufficient quantities at the time customers need them."

The Yongin semiconductor cluster is planned to house four fabrication plants, with Y2 being the second. The Y2 plant is scheduled to break ground in July next year, with its first cleanroom expected to begin operations in June 2029, primarily producing high-bandwidth memory (HBM) and other next-generation dynamic random-access memory (DRAM) products. Construction of the Y1 plant is also progressing as planned, with its first cleanroom set to open in February next year.

SK hynix previously announced it would accelerate the completion of the Yongin semiconductor cluster by 12 years, moving the target date from 2045 to 2033. The Y2 project represents the second phase of this expedited expansion plan, with related investments continuing until October 2031. The company chose to build a new NAND flash wafer plant in Cheongju primarily because the site offers the shortest construction period. SK hynix noted that the Cheongju campus currently houses M11, M12, and M15 plants, and the new factory can efficiently integrate with existing production lines and utilities such as water and electricity.