SK Hynix said on Tuesday that it will begin building a new fab with 15 trillion won in South Korea in October.
M15X will be added to its existing facility in Cheongju, right next to fab M15.
The new fab will have a multi-story structure, which means based on the surface area it will be larger than SK Hynix’s fabs M11 and M12 combined.
The South Korean memory chip giant said it secured 60,000 meter square of land for M15X and construction will be completed in early 2025.
SK Hynix is planning to build another fab called M17 nearby, but it will decide when construction will start for this fab at a later date.
The company said it expects demand for memory chips, which is dropping currently due to inflation and supply chain issues, is expected to start recovering in 2024 and fully normalized in 2025.
M15X was being built on its timeline to take advantage of this expected trend, SK Hynix added.