SK Hynix Approves $38 Billion for New Memory Fabs, No Output Before Late 2028

Published Aug 15, 05:46 PM UTC

SK Hynix's board has approved a historic 54.3 trillion won ($38 billion) investment to build two new memory fabrication plants in South Korea. The Y2 fab in Yongin will produce high-bandwidth memory (HBM) and next-generation DRAM, while the M17 facility in Cheongju will manufacture NAND flash memory. However, production timelines are extended: M17's first cleanroom opens in December 2028, and Y2's in June 2029, meaning no chips will be produced before late 2028. The investment comes amid surging memory prices and record quarterly results for SK Hynix, driven by AI demand. The company reported Q2 revenue of 79.3 trillion won (up 257% year-over-year) and an operating margin of 76%. Customer demand currently exceeds supply, and the company has secured long-term agreements with about 10 key customers. The new fabs will not alleviate supply constraints until after 2028.