SK hynix Invests 54 Trillion Won in Yongin Y2 and Cheongju M17 to Secure Mid-to-Long-Term Production Base for AI Memory Demand

SK hynix Inc. announced that it has decided to build new fabs in Yongin and Cheongju to respond to the continuously growing demand for memory in the AI era.

The company approved a total investment of approximately 54 trillion, 35.2 trillion won in Yongin “Y2” fab and 19.1 trillion won in the Cheongju “M17” fab, in a board meeting.

This decision represents execution of the mid-to-long-term investment strategy announced by the company last June. Under its master plan to invest 600 trillion won in the Yongin Semiconductor Cluster and 100 trillion won to expand its Cheongju production base, SK hynix is currently constructing its first fab in Yongin (Y1). With this latest decision, the company is embarking on the construction of subsequent fabs in both Yongin and Cheongju.

According to market research firm Omdia, both DRAM and NAND demand are projected to maintain a compound annual growth rate (CAGR) of 19% from last year through 2030. The company views this growth not as a temporary supercycle, but as a structural transformation in which memory transcends its role as a mere component to become core infrastructure determining AI performance itself.

SK hynix stated that in the AI era, technological competitiveness alone is not enough and the ability to supply the required volume at the exact moment customers need it is the ultimate competitive advantage. We reached this investment decision after a thorough review of market demand.

Yongin Y2 is the second of four fabs planned sequentially for the Yongin Semiconductor Cluster. It will serve as a DRAM production base spanning a total floor area of 341,000 pyeong (approximately 1,130,000m²). Construction is scheduled to break ground in July next year, targeting the opening of its first cleanroom in June 2029 to produce high-bandwidth memory (HBM) and other next-generation DRAM products. Meanwhile, construction on Y1 is progressing smoothly toward its initial cleanroom opening target of February next year.

SK hynix previously set a goal to advance the completion date of the Yongin Semiconductor Cluster by 12 years—from the originally planned 2045 to 2033—to finish constructing all four fabs. The Y2 construction serves as the second phase supporting this accelerated timeline and the investment spans to October 2031 sequentially.

For the Yongin Semiconductor Cluster—sprawling over approximately 1.26 million pyeong(approximately 4,160,000m²) in Wonsam-myeon, Cheoin-gu, Yongin-si, Gyeonggi-do—Phase 1 power and water infrastructure required up through Y2 operation is nearing completion, currently at a 99% progress rate. As fab construction and infrastructure setup have been carried out concurrently, the company plans to proceed with the Y2 construction according to schedule.

In the NAND market, demand is surging rapidly centered on enterprise SSDs driven by the full-scale expansion of AI services. This is further boosted by demand for key-value (KV) cache* storage in AI inference, with application fields expected to broaden further as Agentic and Physical AI are introduced.

SK hynix selected Cheongju as its new NAND fab base because it offers the fastest fab construction timeline. The Cheongju Campus already houses the M11, M12, and M15 fabs, enabling efficient production linked to existing operations on sites equipped with substantial pre-established power and water infrastructure. Cheongju M17 will be built across a total area of 206,000 pyeong(approximately 680,000m²), breaking ground in February next year with plans to open its first cleanroom in December 2028. The investment period runs through April 2031 according to the master plan.

SK hynix plans to proactively secure production infrastructure based on mid-to-long-term demand discussed with customers, while expanding actual production capacity in alignment with the timing of customer needs. Fabs will be constructed according to the master schedule, whereas cleanroom expansions and equipment installation will take place sequentially in line with demand trends to maximize capital efficiency.