SK Hynix to build $51 billion NAND chip plant by 2029

• Total investment of 80 trillion won ($51.46 billion) for the NAND production facility, with construction starting in 2025 and completion targeted for 2029
• An additional 20 trillion won ($12.9 billion) will be spent on a new chip packaging factory in Cheongju, scheduled to open by late 2027
• The expansion directly addresses NAND memory chip shortages caused by surging AI industry demand, with the announcement attended by SK Hynix CEO and South Korean President

SK Hynix Announces $51 Billion NAND Chip Plant Investment

SK Hynix has unveiled plans to invest 80 trillion won ($51.46 billion) to construct a new NAND memory chip manufacturing facility by 2029, responding to surging demand driven by the artificial intelligence boom.

Key Investment Details:

The South Korean chipmaker will build the new fabrication plant, designated M17, in Cheongju, South Korea, with construction scheduled to begin next year. The announcement was made at an event attended by SK Hynix CEO Kwak Noh-jung and South Korean President Lee Jae Myung on July 2.

In addition to the NAND production facility, SK Hynix plans to invest an additional 20 trillion won to establish a new chip packaging factory in the same city, targeting completion by late 2027.

Market Context:

The massive capital expenditure addresses an industry-wide NAND memory chip shortage intensified by the rapid expansion of AI applications and infrastructure. NAND flash memory is critical for data storage in servers, smartphones, and AI systems, with demand accelerating as AI workloads require increasingly sophisticated storage solutions.

Strategic Implications:

This investment represents one of the largest single commitments in the semiconductor industry and underscores South Korea's strategy to maintain its leadership position in memory chip production. The combined 100 trillion won ($64 billion) investment in both facilities signals SK Hynix's confidence in sustained long-term demand for memory chips.

The project also reflects growing government support for the semiconductor sector, evidenced by presidential attendance at the announcement, as nations worldwide compete to secure domestic chip manufacturing capabilities.