Nvidia's partner SK Hynix is planning to build a $6.8 billion chip factory in South Korea.

South Korean semiconductor company SK Hynix and Nvidia's supplier announced on Friday their plans to build a semiconductor factory worth 9.4 trillion South Korean won, equivalent to $6.8 billion, in the Yongin Semiconductor Cluster.

The company will start construction of its first manufacturing facility in March 2025, aiming for completion by May 2027 to boost the production of AI memory chips and support future growth.

Kim Yong-sik, Vice President and Head of Manufacturing Technology at SK Hynix, stated, "The Icheon cluster is the foundation for SK Hynix's medium to long-term growth, and it will be a place of innovation and mutual prosperity that we create together with partners."