Cheongju Selected as M15X DRAM Production Base
Preparing for Surge in HBM Demand
SK Hynix is proactively expanding the production capacity of next-generation DRAM, including high-bandwidth memory (HBM), a core component of AI infrastructure, to respond to the rapidly increasing demand for artificial intelligence (AI).
Aerial view of the new SK Hynix fab 'M15X' under construction in Cheongju, Chungbuk / [Photo by SK Hynix]
On the 24th, SK Hynix announced that, following a board resolution, it has decided to designate the newly constructed fab M15X in Cheongju, Chungcheongbuk-do, as a DRAM production base and will invest approximately 5.3 trillion KRW in the fab's construction.
SK Hynix explained, "As a global leader in AI memory, we aim to contribute to revitalizing the national economy through expanded investment in our domestic production bases, which are the foundation of our competitiveness, while enhancing the status of South Korea as a semiconductor powerhouse."
SK Hynix plans to officially begin construction of the fab at the end of this month, complete it by November 2025, and start mass production. Equipment investments will also proceed sequentially, with a long-term plan to invest over 20 trillion KRW in M15X to expand the production infrastructure.
The company views the DRAM market as entering a mid- to long-term growth phase with the full-scale advent of the AI era. It expects steady demand growth for general DRAM products, centered on HBM, which is anticipated to grow at an annual rate of over 60%, and high-capacity double data rate (DDR) 5 modules for servers.
SK Hynix stated, "HBM requires at least twice the capacity compared to general DRAM products to secure the same production volume," adding, "We judged that increasing DRAM capacity is a prerequisite," explaining the background of the investment.
SK Hynix plans to produce new DRAM at the Cheongju M15X before the completion of the first fab in the Yongin semiconductor cluster in the first half of 2027. M15X is adjacent to the M15 fab, which is increasing its silicon through via (TSV) capacity, optimizing HBM production. TSV is a technology that drills thousands of tiny holes in DRAM chips and connects electrodes vertically through these holes.
Kwack No-jeong, President of SK Hynix, said, "M15X will become a core facility supplying AI memory worldwide and serve as a stepping stone connecting the company's present and future," adding, "I am confident that this investment will be a significant step forward not only for the company but also for the future of the national economy."
The company will also proceed smoothly with planned domestic investments, including the Yongin cluster, which involves an investment of about 120 trillion KRW. The land development progress for the Yongin cluster is about 26%, which is 3 percentage points faster than the target. Compensation procedures and cultural heritage surveys for the site where production facilities will be built have been completed, and infrastructure development is progressing rapidly. The first fab within the cluster will begin construction in March next year and be completed by May 2027.
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