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Construction of $106B SK hynix Mega Fab Site Moving Along, But At Slower Pace

Construction of $106B SK hynix Mega Fab Site Moving Along, But At Slower Pace

When there is a slowdown in a major industry, large companies slow down their medium- and long-term capacity investments. That's exactly what happened with SK Hynix's Yongin Semiconductor Cluster, A major project was announced in April 2021 and is valued at $106 billion.. While site development is largely complete, only 35 percent of the initial shell building has been constructed, according to Korea's Ministry of Trade, Industry and Energy.

“Approximately 35% of Fab 1 has been completed so far and the renovation of the site is proceeding apace,” Korea's Ministry of Trade, Industry and Energy said in a statement. “By 2046, KRW 120 trillion ($90 billion today, $106 billion in 2021) will be invested to complete Fabs 1 through 4, and construction of Fab 1's production line will begin in March next year. . Once completed, the infrastructure will be complete. Classified as the world's largest three-story fab.”

SK hynix's new semiconductor fabrication cluster, announced nearly three years ago, is to be used primarily for making DRAM for PCs, mobile devices, and servers using the latest ultraviolet lithography (EUV) process technologies. . The cluster, located near Yongin, South Korea, consists of four large Fabs located at 4.15 million m.2 With a planned capacity of approximately 800,000 wafer starts per month (WSPMs), the site is poised to be one of the world's largest semiconductor production hubs.

At the same time, SK Hynix's construction progress has been slower than the company had previously estimated. The first fab in the complex was originally scheduled to come online in 2025, with construction starting in the fourth quarter of 2021. However, SK Hanks began reducing its capital expenditures in the second half of 2022, and the Yungen Semiconductor Cluster project fell through. Victim of this cut. To be sure, the site continues to grow, just at a slower pace; This is why about 35% of the first fab shell is built at this point.

If completed as planned in 2021, the first phase of SK hynix Yongin operations will be a major $25 billion memory production facility, equipped with EUV tools, and capable of 200,000-WSPM. , 2021 reports.

Sources: Korea Ministry of Trade, Industry and Energy; Computer base

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