SK Hynix is investing more than 20 trillion won to build a new DRAM production base in Cheongju to preemptively respond to the rapidly increasing demand for HBM.

SK Hynix announced on the 24th that it has decided to expand its production capacity for next-generation DRAMs, including HBM, which is the core of AI infrastructure, in order to proactively respond to the rapidly increasing demand for AI semiconductors.

On this day, the company decided through a board of directors resolution to build a new fab, M15X, in Cheongju, Chungcheongbuk-do, as its DRAM production base and to invest approximately KRW 5.3 trillion in the construction of the fab.

SK Hynix plans to begin construction of the fab in earnest at the end of this month and begin mass production after completion in November 2025. It also plans to sequentially invest in equipment and invest a total of more than 20 trillion won in M15X in the long term to expand its production base.

SK Hynix emphasized, “As a global leader in AI memory, we aim to contribute to the national economy by expanding investment in our domestic production base, which is the foundation of our company’s competitiveness, while also elevating the status of Korea as a semiconductor powerhouse.”

As the AI era begins in earnest, the semiconductor industry sees the DRAM market entering a mid- to long-term growth phase. The company also forecasts that demand for general DRAM will steadily increase, centered on high-capacity DDR5 module products for servers, along with HBM, which is expected to grow by more than 60% per year.

In this flow, SK Hynix decided that increasing DRAM capacity was a top priority, as HBM requires at least twice the capacity to secure the same production volume as general DRAM products.

Accordingly, the company decided to produce new DRAMs at M15X in Cheongju before the completion of the first fab of the Yongin Semiconductor Cluster (hereinafter referred to as Yongin Cluster) in the first half of 2027. M15X is located adjacent to M15, which is expanding its TSV capacity, so it also has the advantage of optimizing HBM production.

Along with the M15X, SK Hynix plans to proceed with planned domestic investments, including the Yongin Cluster, worth approximately 120 trillion won, without a hitch.

Currently, the site development progress rate of the Yongin cluster is approximately 26%, and construction is progressing 3% points faster than the target. Compensation procedures and cultural heritage surveys for the site where SK Hynix’s production facility will be built have all been completed, and infrastructure development such as power, water, and roads is also progressing faster than planned. The company plans to start construction of the first Yongin fab in March next year and complete it in May 2027.

Meanwhile, SK Hynix's domestic investment is also a major part of the overall domestic investment of the SK Group. SK Hynix, which was incorporated into the SK Group in 2012, has continued to make domestic investments centered on its 'future vision' of building three additional factories starting with Icheon M14 by investing a total of 46 trillion won since 2014. As a result, the company completed its future vision early by completing Cheongju M15 in 2018 and Icheon M16 in 2021.

The company expects that the M15X and Yongin cluster investments that are being promoted will serve as a catalyst to help South Korea emerge as an AI semiconductor powerhouse and revitalize the national economy.

SK hynix President and CEO Kwak No-jeong said, “The M15X will be a key facility that supplies AI memory to the world and will be a bridge connecting the present and future of the company.” He added, “I am confident that this investment will be a big step forward that will contribute to the future of the national economy beyond the company.”