Asia Tech Wire (July 26) -- SK hynix announced Friday that it has passed a board of directors' resolution to build the first fab and business facilities of the Yongin Semiconductor Cluster in South Korea with an investment of about 9.4 trillion won ($6.77 billion).

The South Korean chipmaker said the company will start construction of the first fab in the Yongin cluster in March next year and inaugurate it in May 2027, as per the original schedule.

The company plans to produce AI-oriented memory and next-generation DRAM products represented by HBM at the fab in Yongin, and will also be ready to produce additional products based on market demand at the time of completion.

The Yongin cluster, which will stand on a 4.15 million-square-meter site Wonsam-myeon, Yongin, Gyeonggi Province, is currently undergoing site preparation and infrastructure construction.

SK hynix said that after finishing the construction of the first fab, it will proceed with the construction of the remaining three factories in order to develop the Yongin cluster into a "global AI semiconductor production base".