Global Market: SK Hynix approves $38.3 billion investment plan through 2031 to expand AI chip production

South Korean memory chipmaker SK Hynix has approved investments worth about 54.3 trillion won ($38.3 billion) through 2031 to expand its semiconductor manufacturing capacity, as the company ramps up production of advanced memory chips to meet growing demand driven by artificial intelligence (AI), according to Reuters.

The company said its board has approved 35.2 trillion won for the second phase of construction at its semiconductor fabrication complex in Yongin and 19.1 trillion won for the M17 chip plant in Cheongju.

The investment approval follows SK Hynix's announcement in June that it planned to invest 600 trillion won in the Yongin semiconductor cluster and 100 trillion won to expand production facilities in Cheongju. A Reuters report stated that the company had indicated at the time that detailed investment schedules would be released after receiving board approval.


Yongin to Become Key DRAM Manufacturing Hub
According to the company, the Y2 fabrication plant in Yongin will be the second of four planned chip fabrication facilities within the semiconductor cluster. The plant will primarily manufacture dynamic random access memory (DRAM) chips, which play a crucial role in servers supporting AI workloads.

Construction of the Y2 facility is expected to begin in July 2027, while its first cleanroom is scheduled to become operational in June 2029. The facility will manufacture high-bandwidth memory (HBM) and other next-generation DRAM products, strengthening SK Hynix's position in the rapidly expanding AI memory market.

The company also said development of the first-phase Yongin fabrication plant remains on schedule, with its first cleanroom expected to open in February 2027.

Cheongju Expansion to Boost NAND Flash Output
Separately, SK Hynix announced that construction of the M17 fabrication plant in Cheongju is scheduled to begin in February 2027.

The facility will produce NAND flash memory, which is widely used for data storage across devices including personal computers, smartphones and AI servers. The first cleanroom at the M17 plant is expected to become operational in December 2028, the report stated.

The Cheongju expansion is aimed at strengthening the company's production capacity across both DRAM and NAND memory segments as demand for advanced semiconductor components continues to rise.

Shareholder Return Measures Under Review
In a separate regulatory filing, SK Hynix said it is reviewing additional shareholder return initiatives aimed at enhancing shareholder value.

According to Reuters, the company expects to finalize and announce the details of those measures during the third quarter, providing investors with further clarity on its capital allocation strategy.