SK Hynix, the world’s second-largest memory chip maker, plans to invest 15 trillion won ($10.9 billion) over the next five years to build a new chip plant in South Korea.

SK Hynix will start the construction of the facility, called M15X, in October and will complete early 2025 in Cheongju, south of Seoul.

SK Hynix said in a statement that the plant will make memory chips, but whether it will be DRAM chips or NAND flash chips will be determined according to market conditions, a company spokesperson said, declining to comment on its planned capacity.

SK Hynix has DRAM production facilities in Icheon, South Korea, NAND flash chip production plants in Cheongju, as well as production plants in Wuxi, Chongqing and Dalian, China.

SK Group, its parent, recently announced plans to build a chip packaging facility in the United States.

SK Hynix noted that experts forecast a recovery from 2024 and a rebound in 2025, with the cyclical nature of the business becoming less volatile compared to past years.