SK hynix Unveils Massive 9.4 Trillion Won Investment in Yongin Semiconductor Cluster

SK hynix announces a 9.4 trillion won investment in the Yongin Semiconductor Cluster, aiming to boost Korea's semiconductor industry and meet AI demand with new state-of-the-art fabs.

Introduction

SK hynix Inc., a leading global semiconductor manufacturer, has announced a significant investment plan for the construction of the first fab and auxiliary facilities at the Yongin Semiconductor Cluster.

The company’s board of directors has approved an investment of approximately 9.4 trillion won to establish the initial infrastructure, aiming to enhance the competitiveness of the Korean semiconductor industry and stimulate economic growth.

News Highlights:

  • SK hynix to invest 9.4 trillion won in Yongin Semiconductor Cluster.
  • Construction of the first fab to start in March 2025 and complete by May 2027.
  • Yongin Cluster to boost Korean semiconductor industry and economy.

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Investment Details

Construction and Timeline

The Yongin Cluster will be developed on a sprawling 4.15 million square meter site in Wonsam-myeon, Yongin, Gyeonggi Province.

SK hynix plans to commence the construction of the first fab in March 2025, with completion targeted for May 2027.

This project will form the cornerstone of SK hynix’s future growth strategy, particularly in meeting the surging demand for AI memory semiconductors.

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Facilities and Infrastructure

The approved investment encompasses a range of construction costs essential for the initial operation of the cluster, including auxiliary facilities such as water treatment plants, substation facilities, communal areas for underground utilities, and warehouses.

Additionally, business support buildings and welfare facilities are included in the plan. The overall investment period spans from August 2024 to the end of 2028, with business support buildings slated for completion in the second half of 2028.

Strategic Objectives

Enhancing Semiconductor Production

The Yongin Cluster will feature four cutting-edge fabs dedicated to producing next-generation semiconductors.

The first fab will specialize in advanced DRAMs, including High Bandwidth Memory (HBM), essential for AI applications.

SK hynix will complete the remaining fabs sequentially, turning the Yongin Cluster into a global center for AI semiconductor production.

Supporting Small Businesses

SK hynix will build a “Mini-fab” in the project’s first phase. This research facility will have 300mm wafer processing equipment. It will offer small business partners a near-production environment.

A “Mini-fab” is a specialized research facility designed for developing, demonstrating, and evaluating semiconductor technologies. Equipped with 300mm wafer processing equipment, it provides small businesses with an environment similar to actual production sites. This setup helps partners refine their technologies and improve their performance before scaling up to full-scale production, fostering innovation and collaboration within the semiconductor industry.

The goal is to foster innovation and collaboration. This initiative aims to help small businesses develop, demonstrate, and evaluate new semiconductor technologies, thereby improving their technological capabilities.

Economic and Technological Impact

Boosting Korea’s Semiconductor Industry

The Yongin Semiconductor Cluster is expected to significantly enhance Korea’s semiconductor technology and ecosystem competitiveness.

By establishing a robust infrastructure and fostering partnerships with more than 50 local small companies, SK hynix aims to create a collaborative environment that drives innovation and economic growth.

Meeting AI Demand

The investment in the Yongin Cluster aligns with SK hynix’s strategy to cater to the rapidly increasing demand for AI memory semiconductors.

With its advanced production capabilities and state-of-the-art facilities, the company will lead the AI semiconductor market and challenge global giants.

Corporate Commitment

Vision for Growth and Innovation

The Yongin Cluster will drive SK hynix’s growth and innovation. It will be a hub for collaboration and prosperity with our partners. We aim to boost the national economy and enhance Korea’s semiconductor technology and competitiveness.”

Kim Young-sik, VP of Manufacturing Technology.

Conclusion

SK hynix’s major investment in the Yongin Semiconductor Cluster is a game-changer for both the company and Korea’s semiconductor industry.

The project will build cutting-edge fabs and support small businesses. SK hynix aims to advance semiconductor technology and boost economic growth.

The Yongin Cluster is poised to become a global hub for AI semiconductors. This move highlights SK hynix’s dedication to technological excellence and strategic growth.

Kumar Priyadarshi
Kumar Priyadarshi

Kumar Joined IISER Pune after qualifying IIT-JEE in 2012. In his 5th year, he travelled to Singapore for his master’s thesis which yielded a Research Paper in ACS Nano. Kumar Joined Global Foundries as a process Engineer in Singapore working at 40 nm Process node. Working as a scientist at IIT Bombay as Senior Scientist, Kumar Led the team which built India’s 1st Memory Chip with Semiconductor Lab (SCL).

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