SK hynix is ramping up investments to maintain its leadership in the High Bandwidth Memory (HBM) market, with the South Korean company to invest over 20 trillion won ($14.6 billion) in Cheongju, Chungbuk Province, to expand its next-generation HBM production capacity.

SK hynix announced on Wednesday that its board resolved to build M15X as a new DRAM production base in Cheongju. Initially intended for NAND flash production, the company shifted its focus as competition intensifies in the HBM market. Construction will commence at the end of April 2024, with mass production slated to begin in November 2025.

SK hynix plans to invest 5.3 trillion won solely in constructing M15X, and with a long-term commitment to increase equipment investment, will pour in over 20 trillion won in total. The facility will incorporate Extreme Ultraviolet (EUV) lithography equipment and will also be capable of producing approximately 100,000 wafers per month, according to industry insiders. This production volume is double the company’s HBM production capacity in 2023.

As SK hynix makes significant domestic investments, discussions on expanding incentives such as subsidies and tax deductions are expected to intensify. Unlike the United States and Japan, Korea currently does not provide subsidies for semiconductor plant construction.

For its part, SK networks announced the inauguration of PhnyX Lab, an AI technology development organization based in Silicon Valley, California, on Wednesday. PhnyX Lab was formed to internalize SK networks’ AI development capabilities and employs four local talents known for leading multiple AI projects as researchers and undergraduate/graduate students at Stanford University. They will collaborate with SK networks and its subsidiaries to drive the development of AI products and new solutions. Anticipated areas of focus include AI-related technology development, AI service validation and market testing, and internalization of AI capabilities via collaboration with other companies.

By Seong Seung-hoon and Minu Kim

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