09:22 AM EDT, 07/26/2024 (MT Newswires) -- Nvidia ( NVDA ) supplier SK Hynix said Friday it will invest about 9.4 trillion won ($6.78 billion) in building the first chip plant and business facilities at the Yongin Semiconductor Cluster in South Korea.

Construction of the first fab is expected to begin in March 2025 and finish in May 2027, SK Hynix said, adding that it plans to complete three more fabs "sequentially" at the Yongin cluster after the first one is completed.

"The Yongin cluster will be the foundation for SK Hynix's mid- to long-term growth," said Kim Young-sik, the company's head of manufacturing technology.

Aside from the first fab, the investment is also expected to fund the initial operation of the Yongin cluster, including auxiliary and business facilities which are scheduled to be completed in the second half of 2028, the Nvidia ( NVDA ) supplier said.

Shares of Nvidia ( NVDA ) were up 3% in recent Friday premarket activity.

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