South Korea-based SK Hynix revealed it would invest KRW9.4 trillion ($6.8 billion) to construct the first fabrication plant in the Yongin Semiconductor Cluster after its board approved the project.

The fabrication plant will be the first manufacturing site located in the cluster. It stated construction will start in March 2025 with a target of May 2027 to complete the project.

SK Hynix supplies Nvidia with high-bandwidth memory chips and stated the facility would lay the foundation for its future growth. It is expanding production capacity in response “to the rapidly increasing demand for AI memory semiconductors”.

VP and head of manufacturing technology at SK Hynix Kim Young-sik said the company wants to “contribute to revitalising the national economy by successfully completing the large-scale industrial complex”.

He said the new cluster will enhance South Korea’s “semiconductor technology and ecosystem competitiveness”.

SK Hynix announced plans to invest a total of KRW122 trillion across four fabrication sites in Yongin.