SK hynix to boost production of advanced DRAMs at new fab in Cheongju

SK hynix Inc. said Wednesday it will ramp up production capacity of next-generation DRAMs in response to rising demand for artificial intelligence (AI) semiconductors.

Earlier in the day, the world’s second-largest memory chip maker decided in a board meeting to invest 5.3 trillion won (US$3.85 billion) to convert a new fab named M15X in Cheongju, approximately 140 kilometers south of Seoul, into a DRAM production base.

In 2022, the chipmaker said it would invest 15 trillion won over the next five years in the construction and equipment installation of the M15X fab, an expansion fab of M15. Construction began in October later that year, but it was suspended in April last year amid the chip downturn.

Construction of the M15X is expected to commence in earnest at the end of this month, with the aim of completion by November next year, SK hynix said in a statement, adding that the long-term investment would total more than 20 trillion won.

The company expected demand for advanced DRAMs, like HBM (High Bandwidth Memory), a core component of high-performance computing and AI applications, to jump more than 60 percent annually. It also anticipated demand for general DRAMs to grow steadily driven by high-capacity DDR5 module products for servers.

SK hynix said it had closely monitored market conditions before deciding to resume construction.