According to a regulatory filing with the Financial Supervisory Service, the company plans to invest 21.61 trillion won in the construction of Phases 2 through 6 of its first fabrication plant complex in Yongin, south of Seoul.
The investment, classified as new facility spending, amounts to 29.23 percent of SK hynix’s equity capital based on its latest consolidated financial statements.
The project will run from March 1, 2026, to Dec. 31, 2030. The board of directors approved the plan on Wednesday, with all five outside directors in attendance.
SK hynix shares closed Wednesday at a record high of 1,028,000 won, up 2.29 percent on the day and nearly tenfold from early 2025 levels. The capital spending plan was disclosed after market hours.
“This investment is intended to strengthen our manufacturing base and ensure stable supply capacity over the long term,” the company said in its disclosure.
It cautioned that the total investment amount may change depending on project progress and shifts in the business environment. The start and end dates are also provisional and could be adjusted during implementation.
Expanding costs, swelling long-term outlay
The latest disclosure comes amid expectations that SK hynix’s overall investment in the Yongin Semiconductor Cluster could eventually approach 600 trillion won, nearly five times its original projection, driven by facility expansion, inflation and rising equipment costs.
Industry sources said Yongin City recently approved its ninth revision to the cluster’s development plan, raising the floor area ratio of SK hynix’s main site from 350 percent to 490 percent and easing height limits to 150 meters. The changes are expected to expand cleanroom space by about 50 percent, significantly increasing construction and installation costs.
SK hynix initially announced in 2019 that it would invest about 120 trillion won in the Yongin project. However, prolonged delays, a surge in AI-related demand and the growing need for cutting-edge equipment have since pushed costs sharply higher.
The Yongin cluster will eventually house four large fabrication plants built in stages. Industry estimates suggest each fab could require more than 120 trillion won, implying total investment of at least 480 trillion won once all facilities are completed, with further increases likely as prices rise. The overall project is planned to extend through 2050.
SK hynix plans to begin initial cleanroom operations at the first Yongin fab in 2027. Market watchers expect its production capacity to exceed that of the company’s largest existing facility in Icheon.
AI boom and volatility
The expansion reflects the rapid transformation of the global semiconductor industry driven by artificial intelligence.
Speaking at the Trans-Pacific Dialogue 2026 held Feb. 20–21 in Washington, Chey said artificial intelligence was fundamentally reshaping industrial structures worldwide.
“AI is driving extraordinary opportunities, but also unprecedented uncertainty,” he said.
He noted that earnings expectations have risen rapidly in recent months, adding that Morgan Stanley recently projected SK hynix’s operating profit could reach 179 trillion won ($123 billion) this year.
Despite the upbeat outlook, Chey warned against excessive optimism.
“It sounds like great news, but it could also mean a $100 billion loss,” he said. “Volatility is extremely high.”
Meanwhile, rival Samsung Electronics has resumed construction of its fifth plant at the Pyeongtaek campus, targeting operations in 2028. The project is estimated at around 60 trillion won, highlighting intensifying competition among Korean chipmakers in the AI era.
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