SK Hynix Invests 103 Trillion Won Over 5 Years... Expands Domestic and International Facilities to Respond to AI

Full-scale AI Memory Supply Including HBM
Investment in Cheongju M15X and Yongin Cluster
Securing Packaging Facility in Indiana, USA

As SK Group identifies artificial intelligence (AI) and semiconductors as future growth sectors, SK Hynix plans to invest a total of 103 trillion KRW over the next five years. The company intends to fully respond to the surging demand by focusing investments on AI-related business areas such as high-bandwidth memory (HBM). To this end, the company has announced investments not only in domestic production facilities to be established in Cheongju and Yongin but also in an advanced packaging facility to be built in West Lafayette, Indiana, USA.

SK Hynix Icheon Campus Entrance / Photo by SK Hynix

According to SK Group on the 30th, SK Hynix will invest a total of 103 trillion KRW by 2028 to strengthen its competitiveness in the semiconductor business. This is the first time SK Hynix has disclosed its investment plan for the next five years. The company plans to allocate about 82 trillion KRW, approximately 80% of the total investment, to AI-related business areas such as HBM. This reflects the intention to maximize revenue streams in response to the rapidly increasing AI demand.

SK Hynix is expected to expand HBM capacity (CAPA) and enhance product technology through investments in domestic and overseas facilities as well as various research and development (R&D) efforts. In particular, since HBM demand has surpassed supply, the company is focusing on capacity expansion. Earlier, SK Hynix President Kwak No-jeong stated at a press briefing last month that "HBM is already sold out this year, and next year is almost sold out as well."

To achieve this, the company will invest approximately 5.3 trillion KRW to introduce a new fab, 'M15X,' in Cheongju, Chungbuk. Construction of the M15X fab began in April, with completion scheduled for November next year and mass production starting in the third quarter of 2026. The fab will feature an integrated production process for HBM, including extreme ultraviolet (EUV) lithography. SK Hynix stated, "Equipment investments will also proceed sequentially, with a total long-term investment exceeding 20 trillion KRW."

The semiconductor cluster in Yongin, spanning a total area of 4.15 million square meters, is also a key base to meet AI memory demand. SK Hynix plans to introduce four fabs there, with construction of the first fab having started in March and scheduled for completion in May 2027. The company has announced plans to invest about 120 trillion KRW in developing this cluster through 2046.

A bird's-eye view of the new SK Hynix fab, M15X. It will be built next to the existing M15 fab. /
[Image provided by SK Hynix]

An advanced packaging facility will be established in West Lafayette, Indiana, USA. Earlier in April, SK Hynix announced an investment of 3.87 billion USD (approximately 5.3483 trillion KRW) to build an advanced packaging production base for AI memory in the region and to expand R&D collaboration with local research institutions. The company also plans to begin mass production of next-generation HBM and other AI memory products at this facility starting in the second half of 2028.

HBM is AI memory that is installed alongside graphics processing units (GPUs) in AI accelerators. SK Hynix supplies various generations of HBM products, including HBM3 and HBM3E, to Nvidia and holds the number one market share in the HBM market. As demand has surged to the point where Nvidia's AI accelerators are experiencing shortages, SK Hynix is also increasing its HBM-related performance, thereby expanding the company's scale.

After returning to profitability in the fourth quarter of last year, SK Hynix recorded an operating profit of 2.886 trillion KRW in the first quarter, showing improved performance. Operating profit for the second quarter is expected to be around 5 trillion KRW. According to FnGuide, a financial information provider that recently aggregated securities firms' forecasts over the past month, the company's expected operating profit for the second quarter is 5.1995 trillion KRW. Expected sales revenue could increase by 122.75% year-on-year to 16.2739 trillion KRW.

Meanwhile, President Kwak No-jeong will serve as chairman of the Semiconductor Committee within the SK Supex Council starting July 1 to expand synergies among affiliates related to AI and the semiconductor value chain.