South Korean memory chip giant SK hynix announced on Tuesday plans to build a new memory chip fab in Cheongju, North Chungcheong Province by early 2025 and spend 15 trillion won ($10.9 billion) in the next five years on the new site.
The new two-story fab on 60,000 square meters of land, called M15X, will start construction in October. The new plant will be an expansion of the existing M15 line built in 2018.
SK hynix said the memory product manufactured by the new fab has yet to be determined, but added the decision to expand was based on its own projection that the memory chip industry will experience a chip rebound beginning 2025.
Cheongju is one of the major production base of SK hynix, along with Icheon, Gyeonggi Province.
Cheongju houses SK hynix's three fabs -- M11, M12 and M15 -- and a packaging facility. Also, SK hynix has sought to build one more chip production plant, tentatively dubbed M17, on a 433,000 square-meter lot, but the plan was put on hold by the company earlier this year.
The company has invested 46 trillion won in the city since 2014.
"Looking back on the past 10 years, SK hynix could grow into a global company as it boldly carried out investment during crisis," SK hynix Vice Chairman and co-Chief Executive Park Jung-ho said in a statement.
"As we look to prepare for the next 10 years now, I believe starting the M15X will be a first step to lay foundation for a solid future growth."
Shares of SK hynix rose 0.8 percent Tuesday on the Korea Exchange from the previous trading day.
SK hynix have supplied memory products like DRAM and NAND Flash, as well as CMOS Image Sensors, to global chipset customers. SK hynix has been the No. 2 in DRAM market and No. 3 in NAND Flash market by revenue globally, according to TrendForce.