SK Hynix detailed plans to break ground on a KRW15 trillion ($10.9 billion) memory chip fabrication facility in South Korea next month, betting on predictions a decline in demand for the silicon would prove short-lived.
Construction of the company’s M15X facility is scheduled to be completed by early 2025, with the KRW15 trillion investment to be spread over a five year period to cover the building and fitting out of the site.
SK Hynix is using 60,000 square metres of land and stated the plant will eventually rival the combined size of two existing sites.
The company noted demand for memory chips is currently falling at pace due to a global economic slowdown and supply chain disruption, but highlighted predictions of a recovery beginning in 2024 paving the way for a rebound in 2025, positioning it to capitalise “when the industry enters a boom again”.
Park Jung-ho, vice chair and co-CEO, highlighted a history of taking bold decisions over the ten years since the company became part of the SK Group, stating construction of M15X is the first step in its growth strategy for the next decade.
Despite the bullish talk, SK Hynix noted it was currently undecided on M17, its next fabrication facility, with a decision to be based on a review of the broader semiconductor business environment.