News | Chasing DRAM wave, SK Hynix builds another DRAM factory

Cheongju, South Korea, April 24, 2024 - SK Hynix announced that it will invest approximately $14.5 billion to build an advanced dynamic random access memory (DRAM) chip production line in Cheongju, North Chungcheong Province, South Korea. The decision was approved by the company's board of directors and is expected to be completed in November 2025.

The line, named M15X, will specialize in the production of DRAM chips including High bandwidth memory (HBM). Located next to the existing M15 production line, construction of the M15X is scheduled to start this month and will be accompanied by early series production.

SK Hynix said that in addition to investing 20 trillion won in the new plant, the company plans to invest at least another 15 trillion won in the purchase of chip equipment for new production lines.

A SK Hynix spokesperson said: "As a global leader in the field of AI AI memory chips, we will expand our investment in our domestic production base to improve our competitive base."

The investment is also seen as an important contribution by SK Hynix to revitalizing the Korean economy and enhancing South Korea's position in the chip industry. The South Korean chipmaker's decision was driven by the surge in global demand for DRAM in recent years and the continued development of the artificial intelligence chip market.

The M15X will begin operations much faster than the large chip cluster the government is participating in in Yongin, Gyeonggi Province, and is expected to be operational as early as 2027.

At the same time, Samsung Electronics also announced its plans to invest 120 trillion won in the construction of four new chip factories to meet the growing demand for high-end DRAM HBM in the next few years.

For the global chip industry, these moves signal South Korea's continued investment and momentum in the sector. The decision by SK Hynix and Samsung Electronics will further promote South Korea as a major force in the global chip manufacturing industry.