SK Hynix announced it would invest $3.1 billion to build a new semiconductor plant in South Korea.

Construction on the 53,000m2 site in Icheon will begin late 2018 and is slated to be completed in October 2020, the South Korean company said. SK Hynix will invest 3.5 trillion won in the FAB. The compayn said that the production portfolio of the FAB would be decided considering future market conditions as well as the company's technology capability.

SK Hynix continues to expand its production capacity with the M14 in Icheon as well as the construction of the new FAB in Cheongju and the expansion of the cleanroom space at Wuxi FAB, which are expected to be completed in the second half of this year. As the dimensions of semiconductor manufacturing equipment are getting larger, it is also important to secure enough cleanroom space in advance. All these factors have contributed to the company's investment plan.

This new FAB in Icheon is a third FAB setup after the M14, which was completed in 2015, and another FAB in Cheongju, which is under construction. After the construction of the new FAB is completed and equipment wholly installed, the total investment into the three FABs will even exceed 46 trillion won.