SK hynix unveils Cheongju facility to manufacture cutting-edge M15X DRAM.

SK hynix Inc. plans to expand production capacity for next-generation DRAM, including High Bandwidth Memory, through the construction of a new fab in Cheongju and continued investments in the Yongin Semiconductor Cluster, aiming to strengthen Korea's position as an AI semiconductor powerhouse and stimulate the local economy.

Contribution to the revitalization of the domestic economy
Strengthening Korea's position as a semiconductor powerhouse
Expected growth in the DRAM market, especially for HBM

SK hynix Inc., a leading semiconductor company, has announced its plans to expand production capacity for next-generation DRAM, including High Bandwidth Memory (HBM), which is a crucial component of the AI infrastructure. With the approval of the board of directors, SK hynix will construct the M15X fab in Cheongju, North Chungcheong Province, to serve as a new DRAM production base. The company intends to invest approximately 5.3 trillion won in fab construction, with construction set to begin in April and completion expected by November 2025.

Recognizing the growing demand for AI semiconductors, SK hynix aims to contribute to the revitalization of the domestic economy and strengthen Korea’s position as a semiconductor powerhouse through this expansion. The company believes that the DRAM market is entering a mid- to long-term growth phase, especially with HBM projected to grow by over 60% annually. Additionally, the demand for general DRAM is expected to rise steadily, driven by high-capacity DDR5 module products for servers.

SK hynix has identified HBM as a key focus for future growth and acknowledges that it requires larger capabilities compared to general DRAM. Therefore, the company plans to increase DRAM capabilities with a specific focus on HBM. The M15X fab in Cheongju, which will be built before the completion of the first fab in Yongin Semiconductor Cluster in the first half of 2027, is strategically located near the M15 fab, which has been expanding through-silicon via (TSV) capabilities. This proximity allows for optimal production of HBM.

Furthermore, SK hynix will continue its other domestic investments, including the Yongin Semiconductor Cluster project, which is expected to receive an investment of approximately 120 trillion won. The Yongin project is progressing well, with groundwork marking at a rate 3% faster than the target. Key preparatory works, such as land compensation procedures and investigation of cultural properties, have been completed, and the construction of infrastructure, including power, water, and roads, is also underway. Construction of the first fab in Yongin is scheduled to begin in March next year and be completed by May 2027.

For SK Group, SK hynix’s investment plays a significant role in overall domestic investments. Since becoming part of SK Group in 2012, SK hynix has invested a total of 46 trillion won since 2014, constructing three new fabs in Korea as part of its Future Vision initiative.

By investing in the M15X and Yongin Cluster projects, SK hynix aims to strengthen Korea’s position as an AI semiconductor powerhouse and stimulate the local economy. Kwak Noh-Jung, President and CEO of SK hynix, expressed confidence that this investment will not only benefit the company but also contribute significantly to the future of the broader domestic economy. The M15X fab is seen as a crucial stepping stone that will connect SK hynix’s present and future as a key facility supplying AI memories worldwide.

(Source)

Background Information

About SK hynix: SK Hynix is a important South Korean semiconductor company known for its innovative contributions to the global technology landscape. Specializing in the production of memory solutions, SK Hynix has played a vital role in shaping the semiconductor industry. With a commitment to research and development, they have continuously pushed the boundaries of memory technology, resulting in products that power various devices and applications.

Technology Explained

DDR5: DDR5 (Double Data Rate 5) is the next generation of memory technology for the computer industry. It is a modern day improvement on earlier DDR technologies, with faster speeds, greater bandwidth and higher capacities. DDR5 enables higher resolution, seamless gaming experiences and faster data transfer rates, making it an ideal choice for high-performance computing and 4K gaming. With its greater RAM compatibility, DDR5 provides faster buffering times and raised clock speeds, giving users an improved overall work system. DDR5 is also optimized for multi-tasking, allowing users to multitask without experiencing a significant drop in performance, increasing the productivity of digital tasks. As an ever-evolving technology, DDR5 is paving the way for the computer industry into a new and powerful era.