Memory giant SK Hynix to build $6.8 billion chip plant in South Korea

Memory chip giant SK Hynix announced today plans to build a new semiconductor manufacturing plant in South Korea, representing a massive investment of $6.8 billion. The facility will be constructed in the Yongin Semiconductor Cluster, a burgeoning tech hub just outside of Seoul.

The South Korean government has been actively supporting the semiconductor industry through various incentives and policies, aiming to foster a robust domestic chip ecosystem. This latest investment by SK Hynix is a testament to the country's success in attracting major tech players.

SK Hynix aims to begin construction of the first fabrication plant in March 2025, with completion slated for May 2027. The company envisions the Yongin cluster as a "Global AI semiconductor production base," eventually housing four chip plants and over 50 smaller tech firms.

This expansion comes amid surging demand for AI chips, driven by advancements in artificial intelligence and high-performance computing. The new plant is expected to create thousands of jobs and boost the local economy.

SK Hynix is a South Korean multinational technology company specializing in the manufacturing of semiconductor chips. It's one of the world's largest producers of dynamic random-access memory (DRAM) and NAND flash memory chips, essential components used in computers, smartphones, and other electronic devices. It is a key chip supplier to tech giants like Nvidia, Apple, Samsung, and Dell.

Last week, the company reported that it had recorded the highest profit in 6 years all thanks to the AI wave and its partnership with Nvidia.