SK hynix Board Approves Yongin Semiconductor Cluster Investment Plan

Summary:

• Company confirms investment for the construction of auxiliary facilities necessary for the initial operation of Yongin 1st Fab and the Cluster
• Yongin Cluster expected to increase the competitiveness of the Korean semiconductor industry and contribute to revitalizing the economy

SK hynix Inc. decided to invest about 9.4 trillion won in building the first fab and business facilities of the Yongin Semiconductor Cluster after the board resolution on the 26.

The company designs to start construction of the 1st fab to be built in the Yongin cluster in March next year and complete it in May 2027, and have received an investment approval from the board of directors prior to it. The company will make every effort to build the fab to lay the foundation for the company’s future growth and respond to the rapidly increasing demand for AI memory semiconductors.

The Yongin Cluster, which will be built on a 4.15 million square meter site in Wonsam-myeon, Yongin, Gyeonggi Province, is currently under site preparation and infrastructure construction. The firm has decided to build 4 fabs that will produce next-gen semiconductors, and a semiconductor cooperation complex with more than 50 small local companies.

After the construction of the 1st fab, the company aims to complete the remaining 3 fabs sequentially to grow the Yongin Cluster into a Global AI semiconductor production base.

The amount of investment approved this time included various construction costs necessary for the initial operation of the cluster, including auxiliary facilities ⁽¹⁾, business support buildings, and welfare facilities along with the 1st fab. The investment period was planned to be from August 2024 to the end of 2028, considering the design period to prepare for fab construction and the business support building scheduled to be completed in the 2H28.

The company will produce next-gen DRAMs, including HBM, a representative AI memory, at the 1st fab prepare for production of other products in line with market demand at the time of completion.

In addition, SK hynix plans to build a Mini-fab ⁽²⁾ within the 1st phase to help small businesses develop, demonstrate and evaluate technologies. Through the Mini-fab, the company will provide small business partners with an environment similar to the actual production site so that they can improve the technological perfection as much as possible.

“The Yongin Cluster will be the foundation for SK hynix’s mid- to long-term growth and a place for innovation and co-prosperity that we are creating with our partners,” said Kim Young-sik, VP, head manufacturing technology, SK hynix. “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.”

⁽¹⁾Auxiliary facilities: Water treatment facilities, communal areas (facilities that can jointly accommodate underground facilities such as wires, communication lines, water supply and sewage pipes, heat transfer pipes), substation facilities, warehouses, etc.
⁽²⁾ Mini-fab: Research facility equipped with 300mm wafer processing equipment to demonstrate semiconductor materials, parts, and equipment