SK hynix to spend 9.4 trillion won in first chip line of Yongin cluster

Industry

Published: 26 Jul. 2024, 17:49 Updated: 26 Jul. 2024, 19:21

SK hynix to spend 9.4 trillion won in first chip line of Yongin cluster

Bird's-eye view of Yongin chip cluster's landsite in the neighborhood of Wonsam. [YONHAP]

The SK hynix board on Friday approved a 9.4 trillion won ($6.8 billion) investment to construct the first chip fabrication line of the Yongin semiconductor cluster and auxiliary facilities, pushing forward with the country's ambition to build the world's biggest chip hub.

The investment will be spent from August 2024 throughout the end of 2028.

"As previously planned, the first fabrication line of the Yongin cluster will break ground in March next year and be completed by May 2027," the Korean memory chipmaker said in a press release Friday.

"We will make a full-fledged effort in constructing the fabrication line to respond timely to the rapidly increasing demand for AI memory chips and build a future growth driver for the company."

SK hynix is currently in the process of preparing for the Yongin chip cluster that will sit on a 4.15 million square meter (44.67 million square foot) site of land in the Wonsam neighborhood. The site will house four fabrication lines as well as buildings for 50 small partners.

The 9.4 trillion won package will be used to build the first of four lines as well as auxiliary facilities that include water treatment facilities and communal areas.

SK hynix plans to utilize the first fabrication line to manufacture advanced dynamic random-access chips (DRAM) including high bandwidth memory chips and is open to possibly use it to produce other chip products depending on the market, according to the company.

"The Yongin cluster will be the foundation for SK hynix's mid- to long-term growth and a place for innovation and coprosperity with our partners," said SK hynix Vice President Kim Young-sik, head of Manufacturing Technology.

"We want to contribute to revitalizing the national economy by successfully completing the large-scale industrial complex and dramatically enhancing Korea's semiconductor technology and ecosystem competitiveness."

SK hynix had heralded to beef up its capital expenditure this year during a conference call on Thursday due to building the Yongin chip cluster and the M15X fabrication line in Cheongju, North Chungcheong.

The company had pledged to allocate 122 trillion won into building four chip fabrication line for the mega cluster.