Nvidia partner SK Hynix will invest $6.8 billion in a new South Korean chip plant, enhancing its collaboration with Nvidia and hitting a six-year profit high
On Friday, SK Hynix, a memory chip giant, announced its intention to invest 9.4 trillion Korean won ($6.8 billion) in constructing a new semiconductor manufacturing facility in an emerging chip hub in South Korea.
The fabrication facility, or fab, will be constructed in the Yongin Semiconductor Cluster of South Korea, situated just south of the country’s capital, Seoul. The government is currently in the process of constructing a vast complex of chip operations.
The construction of SK Hynix’s inaugural manufacturing facility in the cluster is scheduled to commence in March of the following year and be completed in May 2027.
SK Hynix, a company based in South Korea, is among the top three manufacturers of memory chips worldwide. These chips are utilized in various devices, including servers and laptops. In recent years, the organization has succeeded with its high-bandwidth memory, which it supplies to Nvidia.
SK Hynix made a 120 trillion won commitment earlier this year to construct four fabs in the Yongin cluster. The remaining three will be established at a later time.
SK Hynix and the South Korean government strive to preserve the nation’s leadership in memory, which is crucial for artificial intelligence applications. The aggressive investment exemplifies this. Seoul has allocated billions of dollars to its semiconductor initiatives, which governments increasingly perceive as strategic.
Samsung, the world’s largest memory device manufacturer, is also located in South Korea.
SK Hynix reported that its second-quarter profit reached its highest level in six years due to its partnership with Nvidia and the AI surge.
