New Delhi, Aug. 7 -- SK Hynix Inc. plans a 54 trillion won ($38 billion) expansion of its chipmaking facilities in South Korea, adding to efforts to rapidly double its production capacity and ease a global shortage of memory chips.

The world's second-largest memory maker will build a new DRAM manufacturing facility in Yongin and a NAND fabrication plant in Cheongju, it said in a statement Friday. The move, covering both dynamic memory for the lowest latency and solid-state storage for fast access to greater quantities of data, is in response to "the continuously growing demand for memory in the AI era," SK Hynix said.

A linchpin of the artificial intelligence infrastructure boom and key partner to Nvidia Corp., SK Hynix has helped drive...