SK Hynix announced on April 24 that its board of directors had approved the decision to designate the new M15X fab, to be built in Cheongju, North Chungcheong Province, as a DRAM production facility. The company also revealed plans to invest 5.3 trillion won in the fab’s construction. The image shows a rendering of the M15X fab. (Yonhap)
SEOUL, Dec. 16 (Korea Bizwire) – SK Hynix is accelerating efforts to expand its high-bandwidth memory (HBM) production capabilities by staffing its new M15X fab in Cheongju, South Korea.
The move underscores the company’s commitment to maintaining its leadership in the HBM market amid robust AI-driven demand expected to outstrip supply through 2025.
Preparing for Expanded HBM Production
The M15X fab, a $15 billion investment, is set to focus on HBM production, with completion slated for November 2025.
While construction is ongoing, SK Hynix is reallocating key personnel from its Icheon campus to Cheongju to lay the groundwork for operations, including infrastructure setup and equipment installation.
The company plans to hire additional engineers and deploy staff through flexible internal programs to fully staff the facility, which complements SK Hynix’s existing fabs: Cheongju for NAND flash and Icheon for DRAM production.
On the morning of October 23, high-bandwidth memory (HBM) was on display at the SK Hynix booth during the 26th Semiconductor Exhibition SEDEX 2024, held at COEX in Gangnam, Seoul. (Yonhap)
Addressing Tight HBM Supply
HBM remains a critical growth driver for SK Hynix, fueled by soaring AI chip demand. The company has fully booked its HBM capacity for 2025, with major clients like NVIDIA requesting accelerated delivery schedules.
Chairman Chey Tae-won highlighted this urgency, noting NVIDIA CEO Jensen Huang’s request to expedite HBM4 supply by six months.
Despite some concerns over potential supply gluts, SK Hynix projects continued strong demand, driven by expanding AI investments and next-generation GPU development. Industry analysts support this outlook, with TrendForce predicting tight supply for HBM3E chips in 2025.
Strategic Developments and Product Roadmap
SK Hynix has already integrated advanced TSV (through-silicon via) technology into its existing M15 fab, laying the foundation for HBM production.
The company’s aggressive R&D efforts include the recent launch of 12-layer HBM3E chips, with 16-layer HBM3E chips expected by mid-2025. Additionally, SK Hynix plans to release its 6th-generation HBM4 products in late 2025.
HBM now accounts for 40% of SK Hynix’s DRAM revenue, a share expected to grow as the company strengthens its production capabilities at M15X.
This strategic expansion ensures SK Hynix remains well-positioned to supply high-performance memory products to AI leaders like NVIDIA while reinforcing its dominance in a rapidly growing market.
Kevin Lee (kevinlee@koreabizwire.com)
