SK hynix Invests 54 Trillion Won in Yongin Y2 and Cheongju M17 to Secure Mid-to-Long-Term Production Base for AI Memory Demand
Rhea-AI Summary
SK hynix (SKHY) approved a total investment of about 54 trillion won to build two new AI-focused memory fabs: 35.2 trillion won for DRAM-focused Yongin “Y2” and 19.1 trillion won for NAND-focused Cheongju “M17”.
Y2 will break ground in July 2027 with its first cleanroom targeted for June 2029, while M17 will start construction in February 2027 and open its first cleanroom in December 2028. According to SK hynix, these projects, running into 2031, execute its previously announced Yongin and Cheongju master plans to expand DRAM and NAND capacity in line with structurally rising AI memory demand and to support the global AI semiconductor supply chain.
Positive
- 54 trillion won total capex committed for AI-focused DRAM and NAND fabs
- Yongin Y2 DRAM fab investment of 35.2 trillion won through October 2031
- Cheongju M17 NAND fab investment of 19.1 trillion won through April 2031
- Cleanroom start dates set for December 2028 (M17) and June 2029 (Y2)
- Omdia projects DRAM and NAND demand CAGR of 19% through 2030, supporting growth rationale
- Yongin cluster completion timeline pulled forward to 2033 from 2045 with Y2 as second phase
Negative
- Large capital commitment of 54 trillion won extends investment period out to 2031
- New Y2 and M17 cleanrooms will not begin operation until 2028–2029, implying a long build-out phase
News Explained
The commitment builds production infrastructure now, while actual output capacity remains staged around customer demand.
The board-approved program commits capital to fab construction and related infrastructure, but it does not immediately create operating capacity: cleanroom expansion and equipment installation will be added sequentially as customer demand develops.
The stated investment periods run through October 2031 for Y2 and April 2031 for M17, and the funded scope includes business-support facilities, an integrated research-and-development center, and auxiliary infrastructure.
At Yongin, phase-one power and water infrastructure required through Y2 operation is reported at
Key Figures
Previous AI Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 03 | AI memory showcase | Positive | +8.2% | HBF specifications and NAND performance showcase for AI memory applications |
| Aug 12 | AI metrology upgrade | Positive | +0.0% | AI-based metrology upgrade expanded manufacturing use and reported yield improvement |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Historical AI-tagged events showed one positive reaction and one neutral reaction, indicating an inconsistent market response.
Key Terms
dram technical
nand technical
cagr financial
kv cache technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
- The company to invest 35.2 trillion won in Yongin "Y2" fab and 19.1 trillion won in the Cheongju "M17" fab
- To execute mid-to-long-term investment strategy… Y2 to open cleanroom in June 2029 and M17 in December 2028
- Expand production base for both DRAM and NAND and to increase capacity aligned with customer demand
- "Strategic investment decision to seize opportunities in line with the market's growth speed and to contributing to the stability of the global AI semiconductor supply chain."
SEOUL, South Korea, Aug. 7, 2026 /PRNewswire/ -- SK hynix Inc. (or "the company", www.skhynix.com) announced today 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
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.
The investment amount includes construction costs for "Business Support Building" with administrative and welfare facilities for Y2 personnel, an "Integrated R&D Center" to consolidate product development testing, analysis, and experiments, as well as auxiliary infrastructure[1]..
[1] Auxiliary infrastructure: Water treatment facilities, utility conduits (underground structures capable of accommodating power lines, telecommunications lines, water/sewer pipes, and thermal supply lines), substations, warehouses, etc. |
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
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[2] storage in AI inference, with application fields expected to broaden further as Agentic and Physical AI are introduced.
[2] KV Cache: A technique that stores and reuses previously computed Key and Value vectors to minimize inefficient redundant calculations during inference. |
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.
The company expects this investment to secure future growth foundations while strengthening the competitiveness of the domestic semiconductor ecosystem and boosting local economies. The large-scale simultaneous investments in Yongin and Cheongju are anticipated to expand joint growth opportunities for supply chain partners, generate employment, and revitalize local commercial districts, thereby contributing to the sustainable growth of the national economy.
An SK hynix official stated that "This investment is a decision made to seize opportunities in line with the market's growth speed. By proactively securing production capabilities, we aim to establish ourselves as a key partner in AI infrastructure, contributing to the stability of the global AI semiconductor supply chain."
About SK hynix Inc.
SK hynix Inc., headquartered in Korea, is the world's top-tier semiconductor supplier offering Dynamic Random Access Memory chips ("DRAM") and flash memory chips ("NAND flash") for a wide range of distinguished customers globally. The Company's common shares are traded on the Korea Exchange, its American Depositary Shares are traded on NASDAQ, and its Global Depository Shares are listed on the Luxembourg Stock Exchange. Further information about SK hynix is available at www.skhynix.com, news.skhynix.com.
Forward-Looking Statements
This press release may contain forward-looking statements, which involve risks and uncertainties. These statements are generally identified words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" and similar expressions, or the negative of such expressions. Forward-looking statements are not guarantees of future performance and are subject to inherent risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. SK hynix undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.
This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction. No part of this press release should form the basis of, or be relied upon in connection with, any contract, commitment, or investment decision.
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SOURCE SK hynix Inc.