February 28, 2025 /SemiMedia/ — SK hynix announced on February 25th that it has officially begun construction of its first semiconductor production facility (wafer fab) in the Yongin Semiconductor Park. This new facility aims to serve as a strong manufacturing base for next-generation DRAM memory, including high-bandwidth memory (HBM), to meet the growing demand for AI memory semiconductors.

Construction of the first-phase wafer fab began on February 24th, with the Yongin city government granting swift approval for the project on February 21st. This accelerated approval was made possible through a business agreement signed in April 2024 between SK hynix and the city of Yongin, aimed at expediting production line construction and boosting the local construction industry. The agreement also led to the formation of a special working group to streamline permitting processes.

The Yongin Semiconductor Park, located in Wonsam-myeon, Yongin City, spans 4.15 million square meters and is planned to house four wafer fabs. The first-phase facility is expected to be completed by May 2027. In July 2024, SK hynix’s board approved a massive investment plan amounting to approximately 9.4 trillion KRW (roughly $71 billion USD).

SK Group Chairman Chey Tae-won, during a visit to the construction site in September 2023, emphasized the importance of the Yongin Park, describing it as "the most meticulously planned and strategically driven project in SK hynix’s history." He highlighted the company’s commitment to driving innovation and surpassing previous achievements.

To further enhance its global competitiveness, SK hynix is also setting up a “mini fab” within the first-phase facility. This mini fab will be equipped with 300mm wafer processing equipment and will serve as a research and testing ground for South Korean component, material, and equipment suppliers to develop and showcase new technologies. SK hynix plans to collaborate with more than 50 suppliers within the park to strengthen the competitiveness of the South Korean semiconductor ecosystem.

The Yongin Semiconductor Park is a critical part of SK hynix's broader strategy to maintain its competitive edge in the global semiconductor market. By focusing on the development of next-generation storage technologies and infrastructure, SK hynix aims to lay the foundation for medium- and long-term growth. Additionally, SK hynix is building the Cheongju M15X HBM production base, which is expected to be completed by the end of 2025, further supporting the company’s strategic goals.