SK Hynix to Invest $38 Billion on Expansion of Chip Production Capacity in South Korea
By Kwanwoo Jun
SK Hynix plans to invest about $38 billion to expand semiconductor production capacity in South Korea, as it seeks to ramp up output to meet growing demand fueled by the artificial-intelligence boom.
The world's second-largest memory chip maker said Friday that its board approved 54.3 trillion won, equivalent to $38.15 billion, in investments--comprising 35.2 trillion won for new chip fabrication facilities in Yongin, south of Seoul, and 19.1 trillion won for new fabrication facilities in Cheongju, central South Korea.
SK Hynix said the board approval follows the disclosure in June of its medium- to long-term plan.
"We reached this investment decision after a thorough review of market demand," the company said, citing market research firm Omdia's projection that demand for DRAM and NAND--the two main types of memory chips--is set to grow 19% annually through 2030.
SK Hynix said it plans to invest a total of 700 trillion won at the two facilities under a longer-term plan.
The investments are expected to strengthen the Nvidia supplier's manufacturing base, as demand for high-bandwidth memory chips and other advanced memory products continues to grow.
SK Hynix, together with Samsung Electronics and Micron Technology, are the main players of the global HBM market.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
August 07, 2026 05:23 ET (09:23 GMT)
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