SK Hynix will invest 3.5 trillion won or $3.1 billion to build an additional semiconductor plant in South Korea to meet demand for memory chips.

The new plant to break ground in late 2018 with a target of October 2020 for completion, the world’s No. 2 memory chipmaker said in a statement.

SK Hynix said the production portfolio for the new plant would be decided later, depending on future market conditions.

Earlier, SK Hynix said demand for cloud computing should underpin DRAM chip sales for the rest of the year.

The memory chipmaker said American and Chinese internet data center providers would drive DRAM revenue in the months ahead, supporting earnings amid a broader slowdown in the chip industry following two years of strong profit growth.

“DRAM supply in the second half will not be enough to ease the supply shortage,” Myoung Young Lee, SK Hynix’s executive vice president, told an earnings conference call.

“Despite suppliers’ continued attempts to increase wafer capacity, production is not increasing fast enough due to growing complexity in tech migration.”

SK Hynix said operating profit for April-June grew 83 percent to 5.6 trillion won or $5 billion from 3.1 trillion won a year earlier.

SK Hynix revenue rose 55 percent from a year earlier to a record 10.4 trillion won.

The DRAM business contributed 80 percent of the company’s sales during the quarter, while NAND accounted for 18 percent.