SEOUL, Jul. 27 (Korea Bizwire) — SK hynix Inc. said Friday it will build a new semiconductor fabrication (FAB) plant at its headquarters in Icheon, southeast of Seoul, seeking to cope with the rising demand for memory chips around the globe.
South Korea’s No. 2 chipmaker said the construction will begin later this year, which will be completed in October 2020. The combined size of the project is estimated at 3.5 trillion won (US$3.1 million).
The company said it has not yet set the production portfolio of the new plant, claiming it is subject to change depending on market environments and its technology progress throughout 2020.
SK hynix said the new factory is anticipated to generate an economic effect of a whopping 80.2 trillion won and create jobs for around 348,000 people.
The company did not provide details behind the calculation but claimed that the new plant will lend support to the South Korean economy, as well as the chip industry as a whole.
SK hynix said the demand for memory chips will continue to rise down the road especially from the server and mobile segments, along with the increasing presence new technologies such as artificial intelligence.
The company said it is inevitable for the company to make investments in expanding its production facilities to cope with the trend.
“This new FAB in Icheon is a third FAB setup after the M14, which was completed in 2015, and another FAB in Cheongju, which is under construction,” the company said. “After the construction of the new FAB is completed and equipment wholly installed, the total investment in the three FABs will even exceed 46 trillion won.
“SK hynix will continue to make efforts to solidify its industry leadership, as well as to contribute to the national economy and social value creation.”