SEOUL, July 26 (Reuters) - The world's second-largest

maker of memory chips, SK Hynix ( HXSCF ), said on Friday it

had decided to invest about 9.4 trillion won ($6.8 billion) in

its first chip plant in the South Korean city of Yongin.

The Nvidia ( NVDA ) supplier, which reported on Thursday its

highest earnings since 2018 and flagged rising AI chip demand,

has been planning investment since 2019 on four new chip plants

at a semiconductor cluster at the site near Seoul.

"The Yongin cluster will be the foundation for SK Hynix's ( HXSCF )

mid- to long-term growth," said Kim Young-sik, the firm's head

of manufacturing technology.

The investment aims to respond to demand for AI

semiconductors and secure future growth, SK Hynix ( HXSCF ) said in a

regulatory filing.

The sprawling 4.2 million sq. m. site, will eventually house

the company's four planned chip plants producing next-generation

semiconductors as well as more than 50 small local firms in the

chip industry, SK Hynix ( HXSCF ) said in a statement.

Friday's figure is expected to cover work on the first plant

until end-2028, for utilities such as water and electricity, as

well as business support and welfare facilities.

It will include a "mini-fab", or research facility that can

process 300-mm silicon wafers, to allow domestic chip materials

and equipment makers to test their products in a realistic

setting, the company said.

The news follows the company's plan, unveiled in April, to

invest about $3.87 billion for an advanced packaging plant and

research and development facility for AI products in the U.S.

state of Indiana.

($1=1,386.4000 won)