On February 25, SK Hynix officially broke ground on its first semiconductor fabrication plant (fab) in the Yongin Semiconductor Cluster, located in Gyeonggi Province, South Korea. The new facility will serve as a cornerstone for the company's strategy to ramp up production of next-generation DRAM, including high-bandwidth memory (HBM), aimed at meeting the rising global demand for artificial intelligence (AI) memory semiconductors.

Construction began a day earlier after receiving swift approval from the Yongin City government on February 21. This rapid approval followed the signing of a "Business Agreement for Early Construction of Production Lines and Activation of the Local Construction Industry" in April of last year, which also established a task force to streamline the permitting process.

Spanning 4.15 million square meters, the Yongin Semiconductor Cluster is designed to house a total of four fabs, with the first phase of construction scheduled for completion by May 2027. The project represents a significant investment of approximately 9.4 trillion won (around $6.6 billion), approved by SK Hynix's board in July 2023.

The Yongin Cluster is set to be a pivotal element in SK Hynix's strategy to maintain its competitive edge in the global semiconductor market. SK Hynix Chairman Chey Tae-won described the cluster as "the most planned and strategically pursued project in the company's history," underscoring its importance in the company's long-term growth plans.

In addition to the main fab, SK Hynix is also developing a "mini fab" within the first phase of the project. This smaller facility will be equipped with 300mm wafer processing equipment, providing a space for domestic suppliers of materials, parts, and equipment to collaborate on developing and testing new technologies. The company aims to foster a competitive semiconductor ecosystem in South Korea by working with over 50 vendors within the cluster.

This initiative is part of SK Hynix's broader strategy to stay at the forefront of the semiconductor industry by investing in next-generation memory technologies and infrastructure. The company is also constructing an HBM production base in Cheongju, central South Korea, which is set to be completed by the end of this year, further enhancing its capabilities in the high-performance memory market.

Once fully operational, the Yongin Semiconductor Cluster will solidify SK Hynix's position as a leader in the development of AI memory solutions, catering to the rapidly growing demands of the AI and data center industries