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SK hynix Approves 54.3 Trillion Won for Two New South Korean Memory Fabs

The board says the move will scale HBM, DRAM and NAND capacity to meet long-term AI memory demand and to limit reliance on China operations.

Overview

  • SK hynix’s board approved the investment on Friday, allocating 35.2 trillion won to Yongin Y2 for DRAM and HBM and 19.1 trillion won to Cheongju M17 for NAND.
  • The company set firm build schedules with Cheongju breaking ground February 2027 and its first cleanroom targeted for December 2028, and Yongin breaking ground July 2027 with a first cleanroom due June 2029.
  • Markets reacted quickly to the vote with SK hynix shares falling about 5 percent and the company saying it will finalize additional shareholder-return measures in the third quarter.
  • SK hynix is reviewing strategic options for its Chongqing, China, facility after U.S. export-control changes restricted equipment upgrades, and it is accelerating domestic packaging and fab investment to reduce geopolitical risk.
  • The investment follows industry forecasts of roughly 19 percent annual demand growth for DRAM and NAND through 2030 and responds to current tight supply conditions that support higher near-term prices and demand for HBM used in AI servers.