SEOUL — South Korean chipmaker SK Hynix announced Thursday that it intends to pour 80 trillion won — roughly $51.46 billion — into building a brand-new factory dedicated to NAND memory chip production, with the project set for completion by 2029.
The new facility, which the company has designated M17, is slated to break ground next year in the South Korean city of Cheongju. The announcement was made at a company event attended by SK Hynix CEO Kwak Noh-jung and South Korean President Lee Jae Myung.
According to the company, the push to expand production capacity comes in response to a growing shortage of NAND memory chips, a shortage being fueled largely by the explosive growth of artificial intelligence technology.
In addition to the new chip factory, SK Hynix has outlined plans to invest another 20 trillion won to construct a chip packaging plant, also located in Cheongju, with that facility expected to be finished by late 2027.
