Technology
Friday, July 26th, 2024 2:03 pm EDT
Key Points
- SK Hynix announced a 9.4 trillion Korean won ($6.8 billion) investment to build a new semiconductor manufacturing plant in the Yongin Semiconductor Cluster in South Korea, with construction starting in March next year and completion expected by May 2027.
- This investment is part of a larger commitment by SK Hynix, which earlier this year pledged 120 trillion won to build four fabs in the Yongin cluster, highlighting both the company and the South Korean government’s efforts to maintain leadership in the memory chip sector, crucial for AI applications.
- SK Hynix, one of the world’s top three memory chip makers, has seen success with its high-bandwidth memory supplied to Nvidia, and recently reported its highest second-quarter profit in six years, benefiting from the growing AI market.
SK Hynix, one of the top three global memory chip makers, announced its plans to invest 9.4 trillion Korean won (approximately $6.8 billion) to build a new semiconductor manufacturing plant in the Yongin Semiconductor Cluster in South Korea. This investment marks the company’s first manufacturing plant in this emerging chip hub located just south of Seoul, where the South Korean government aims to develop a significant complex dedicated to chip operations. Construction of the new fabrication plant (fab) is set to commence in March next year, with completion expected by May 2027.
The Yongin Semiconductor Cluster is central to South Korea’s strategy to maintain its competitive edge in the memory chip sector, which is crucial for applications in artificial intelligence (AI). Earlier in the year, SK Hynix committed a total of 120 trillion won to establish four fabs within this cluster, with the newly announced plant being the first of these. The remaining three fabs will be constructed at a later date. This substantial investment reflects both SK Hynix’s and the South Korean government’s dedication to reinforcing the country’s leadership in semiconductor technology, which is increasingly regarded as a strategic asset on a global scale.
In addition to its significant presence in the memory chip market, SK Hynix has also made notable strides with its high-bandwidth memory products, particularly those supplied to Nvidia. This partnership has bolstered SK Hynix’s position in the rapidly growing AI market, contributing to its recent financial success. The company reported its highest second-quarter profit in six years, showcasing the benefits of its alignment with the AI industry’s demands.
South Korea’s robust semiconductor sector is further strengthened by the presence of Samsung, the world’s largest memory chip maker, underscoring the country’s pivotal role in the global chip industry. The South Korean government has also committed substantial financial support to enhance the nation’s semiconductor capabilities, recognizing the strategic importance of this technology.
Overall, SK Hynix’s new investment underscores the company’s aggressive expansion strategy and its commitment to maintaining a leading position in the semiconductor industry. The development of the Yongin Semiconductor Cluster is a testament to South Korea’s ambition to sustain and grow its influence in the global memory chip market, particularly as AI applications continue to drive demand for advanced semiconductor technologies.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/07/26/nvidia-supplier-sk-hynix-to-build-6point8-billion-chip-plan-in-south-korea.html
