SK Hynix invests billions of euros in construction of new nand memory factory

SK Hynix will build a new factory to meet the growing demand for nandflash memory. The design phase will start next month, construction will start in August and the factory should be ready in June 2019.

The factory will be located in the South Korean city of Cheongju and the construction will involve an investment of 2.2 trillion Korean won. Converted that is about 1.75 billion euros. SK Hynix has had a factory in the same city since 2008 where nand memory is made, but to facilitate further growth, a new fab is needed, according to the company.

According to SK Hynix, the new plant is part of previously presented plans to set up three new production sites. The first factory was completed in 2015. These medium and long-term investment plans have a cost of 46 trillion won, or 36.6 billion euros.

SK Hynix will also expand its existing dram factory in Wuxi so that production there can remain at a competitive level. Between July 2017 and April 2019, Hynix will invest 950 billion won, approximately EUR 755 million, in expanding the cleanroom. This fab has been in operation since 2006 and currently accounts for half of the company’s dram production. SK Hynix is ​​the second largest dram memory manufacturer in the world after Samsung.