Investment for Construction of Yongin 1st Phase Fab and Auxiliary Facilities
"Enhancing Semiconductor Industry Competitiveness and Contributing to the Economy"
SK Hynix has finalized an investment of approximately 9 trillion won to build the first phase fab (semiconductor manufacturing plant) and auxiliary facilities necessary for the initial operation of the Yongin cluster, which will serve as a global artificial intelligence (AI) semiconductor production hub.
On the 26th, SK Hynix announced that it decided through a board resolution to invest about 9.4 trillion won in constructing the first fab and office facilities at the Yongin semiconductor cluster. SK Hynix plans to break ground on the first fab at the Yongin cluster in March next year and complete construction by May 2027.
The approved investment amount includes various construction costs required for the initial operation of the cluster, such as the first phase fab, water treatment facilities, common ducts (facilities that can jointly accommodate underground installations like power lines), substation facilities, office support buildings, and welfare facilities. The investment period is estimated from next month until the end of 2028, considering the design period for fab construction preparation and the office support building scheduled for completion in the second half of 2028.
SK Hynix stated, "This investment decision was made by the board before proceeding according to the previously set schedule," adding, "We will make every effort to ensure the fab construction is flawless to establish the company’s future growth foundation and respond promptly to the rapidly increasing demand for AI memory semiconductors."
The Yongin cluster, spanning approximately 4.15 million square meters in Wonsam-myeon, Yongin-si, Gyeonggi Province, is currently undergoing land leveling and infrastructure development. SK Hynix plans to build four state-of-the-art fabs to produce next-generation semiconductors at this site and establish a semiconductor cooperation complex with about 50 domestic and international materials, parts, and equipment (SoBuJang) companies. After constructing the first fab, the remaining three fabs will be completed sequentially to develop the Yongin cluster into a "global AI semiconductor production hub."
SK Hynix intends to produce next-generation DRAM, including High Bandwidth Memory (HBM), at the Yongin first phase fab. The fab will also be prepared to manufacture other products according to market demand at the time of completion. Additionally, a "mini fab" will be established inside the first fab to support technology development, demonstration, and evaluation for domestic SoBuJang small and medium-sized enterprises. The mini fab is a research facility equipped with 300mm wafer processing equipment to demonstrate semiconductor materials, parts, and equipment, providing partner companies with an environment similar to actual production sites to help improve their technology completeness.
Kim Young-sik, Vice President of Manufacturing Technology at SK Hynix, said, "The Yongin cluster will be a medium- to long-term growth foundation for SK Hynix and a place of innovation and coexistence created together with our partners," adding, "We will successfully complete the large-scale industrial complex construction, dramatically enhance South Korea’s semiconductor technology and ecosystem competitiveness, and contribute to revitalizing the national economy."
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