SK hynix to Begin Construction of Phase 2 of Yongin Fab 1 in August, Accelerating Capacity Expansion

SK hynix is accelerating the construction of its semiconductor cluster in Yongin to respond to the global memory semiconductor supply shortage.

According to industry sources on May 15, SK hynix will begin construction of the second phase of the Fab 1 building at the Yongin Semiconductor Cluster in August. In addition, the company has recently finalized plans for the construction of Fab 2, signaling a full-fledged expansion of its production capacity.

Aerial view of the SK hynix semiconductor cluster in Yongin. SK hynix Newsroom

SK hynix plans to sequentially build four state-of-the-art fabs within the general industrial complex of the Yongin Semiconductor Cluster, which is being developed on a 4.16 million square meter site in Wonsam-myeon, Cheoin-gu, Yongin, Gyeonggi Province.

Of these, the first production line, Fab 1, will consist of two main structures and a total of six cleanrooms. For the first phase of the main structure, which accounts for half of the total, SK hynix began groundwork in February last year and is currently carrying out construction. Following the commencement of groundwork for the second phase of the structure in April this year, the company plans to start building the main structure in August, accelerating its expansion of future production capacity (capability) to meet rapidly increasing customer demand.

SK hynix will invest approximately 31 trillion won in the construction of Fab 1 alone. In particular, to secure an early lead in the global market, the company is moving up the initial operation of the first cleanroom by about three months, from May 2027 as originally planned to February 2027, putting all efforts into securing production lines ahead of schedule.

Aerial view of SK hynix Yongin Semiconductor Cluster Fab Phase 1. SK hynix Newsroom

The reason memory semiconductor companies are accelerating their facility investments is because the global boom in building artificial intelligence (AI) infrastructure is causing a prolonged semiconductor supply crunch. Major manufacturers are competitively shortening their factory expansion schedules to cope with the surge in orders.

Samsung Electronics has also reportedly moved up the groundbreaking for Fab 2 of its P5 facility under construction at the Pyeongtaek campus from early next year to the second half of this year. Fab 2 of P5 is expected to be built with the same structure as Fab 1, which is currently under construction.

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