South Korean memory chipmaker SK Hynix plans to invest ₩2.2 trillion ($1.8 billion) to build a new fabrication facility that produces NAND flash memory in Cheongju, located south of Seoul.

The new fab will begin construction in August 2017, with a target completion date of June 2019, according to the company. SK Hynix said the expansion is part of the company's pledge to invest a total of ₩46 trillion ($38.31 billion) to build three new fabs with a goal of "boosting chip production."

SK Hynix will also put additional investment into its Wuxi fab, which produces half of the company's total DRAM chips.

"Reduction of manufacturing efficiency is inevitable due to space insufficiency considering the increasing number of process steps due to process technology migration which requires more floor space. Hence, to make up for the possible loss of wafer capacity, the company has decided to expand the Wuxi cleanroom space with total investment of ₩950 billion ($791 million) from July 2017 to April 2019," SK Hynix said in a statement.