SK Hynix to Invest $64 bn in AI Memory Chip Expansion, Build $51 bn NAND Fab by 2029

SK Hynix announced plans to invest 100 trillion won ($64.38 billion) in new semiconductor manufacturing facilities in South Korea, expanding its AI memory production capacity. The company said the investment includes a new NAND flash memory fabrication plant and an advanced chip packaging facility in Cheongju. The largest portion, 80 trillion won ($51.46 billion), will fund construction of the M17 NAND flash memory fabrication plant, with production targeted by 2029. Construction is scheduled to begin next year. An additional 20 trillion won will fund a new semiconductor packaging plant in Cheongju, expected to be completed by late 2027. CEO Kwak Noh-jung presented the detailed investment plan at an event attended by South Korean President Lee Jae Myung. The allocation was disclosed after the total investment in Cheongju was announced earlier this week. The projects are part of a broader $2.1 trillion South Korean semiconductor investment initiative involving SK Hynix and Samsung to strengthen the country's leadership in AI chips and reduce economic dependence on the Seoul metropolitan region. South Korea aims to double its memory chip production capacity within five years. SK Hynix shares fell 15 percent, while Samsung Electronics shares dropped 9 percent during a global semiconductor selloff after concerns emerged about potential oversupply in AI computing infrastructure, a Reuters news report said. The company noted its investment schedule could change depending on future semiconductor demand, customer spending patterns, and construction site availability.