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SK Hynix to Invest $90.7 Billion in World’s Largest Chip Production Hub in South Korea

The monumental investment aims to establish a cutting-edge semiconductor cluster in Gyeonggi Province, enhancing SK Hynix's global manufacturing capabilities
South Korea
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SK Hynix Inc., positioned as the world’s second-largest memory chip manufacturer, has unveiled an ambitious plan to channel more than 120 trillion won ($90.7 billion) into creating the largest chip production complex globally. Located in the Yongin Semiconductor Cluster in Gyeonggi Province, South Korea, this initiative marks a significant milestone in the semiconductor industry’s expansion.

The construction for the first of four expansive units is set to commence next March, with SK Hynix highlighting that this initial facility will stand as the largest three-story semiconductor fabrication plant worldwide. Progress on the site is well underway, with approximately 35% completion already achieved. Initial delays, attributed to extended licensing processes since the project’s announcement in 2019, have been overcome following a revitalizing agreement in 2022 involving the government, local municipalities, and the corporate sector.

During a recent visit to the burgeoning site, Trade Minister Ahn Deokgeun reiterated the government’s commitment to bolstering the nation’s semiconductor industry. The focus extends beyond infrastructure development to fostering a robust ecosystem encompassing materials, components, equipment, chip design, and sales sectors. A specialized task force was also initiated last month, concentrating on the provision of adequate electricity supplies essential for the semiconductor cluster’s operations.

In the upcoming month, the government is poised to disclose a comprehensive support framework tailored to the nation’s seven industrial complexes dedicated to advanced and strategic industries, including this semiconductor hub. Plans are also in place to release strategies by the end of June, aimed at boosting artificial intelligence chip exports and fortifying the semiconductor equipment sector.

Minister Ahn emphasized the collective effort of all ministries to ensure South Korean enterprises remain competitive in the fast-paced semiconductor manufacturing arena. The government’s proactive support strategy is particularly geared towards advancing high-bandwidth memory (HBM) chip production, with a target set to surpass $120 billion in semiconductor exports this year.

SK Hynix’s strategic investment not only signifies a significant leap in its manufacturing prowess but also reflects South Korea’s broader vision to solidify its standing as a global semiconductor powerhouse, underpinned by governmental support and industry-wide collaboration.

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