New Semiconductor Fab Prepares SK Hynix for Increasing Memory Demand
SK Hynix Invests in new semiconductor Fab to prepare for increasing memory demand and new equipment
Seoul, July 27, 2018 – SK Hynix Inc. (or ‘the Company’, www.skhynix.com) today announced that the Company will construct a new semiconductor fab plant (or ‘the FAB’) at its headquarters in Icheon, Gyeonggi-do, to respond to growing demand for memory chips and to secure a future growth engine.
Construction on the 53,000m2 site in Icheon will begin late 2018 and is slated to be completed in October 2020. SK Hynix will invest 3.5 trillion won in the Semiconductor Fab. The production portfolio of the Semiconductor Fab shall be decided considering future market conditions as well as the Company’s technology capability.
SK Hynix continues to expand its production capacity with the M14 in Icheon as well as the construction of the new Semiconductor Fab in Cheongju and the expansion of the cleanroom space at Wuxi FAB, which are expected to be completed in the second half of this year. Nevertheless, it is essential to make additional investments in order to meet growing memory demand. As the dimensions of semiconductor manufacturing equipment are getting larger, it is also important to secure enough cleanroom space in advance. All these factors have contributed to the Company’s investment plan.
Since its incorporation into the SK Group, SK Hynix has strengthened its competitiveness through continued investment and capacity expansion. This new Semiconductor Fab in Icheon is a third FAB setup after the M14, which was completed in 2015, and another FAB in Cheongju, which is under construction. After the construction of the new Semiconductor Fab is completed and equipment wholly installed, the total investment into the three FABs will even exceed 46 trillion won. SK Hynix will continue to make efforts to solidify its industry leadership as well as to contribute to national economy and social value creation.
About SK hynix
SK hynix has grown into one of the leading chipmakers in the world through continuous effort to secure a fundamental competitive edge in the fierce semiconductor industry. With the emergence of new entrants and the consolidation of incumbent players, the competition and technological barriers are continuously heightening in the market.
Building on our preceding effort, we are now accelerating the “Deep Change” of SK hynix towards the title of “the best semiconductor solution provider”. To keep pace with the rapidly-changing ICT industry and increasingly-complex needs of customers, we will provide greater value to our customers with outstanding product performance. To that end, we will push technological boundaries through constant innovation and differentiate ourselves to gain a position of strength in the next-generation market. We are particularly committed to acquiring competitiveness in memory chip technology, which is the core of the Fourth Industrial Revolution driven by technologies such as AI and autonomous vehicles. We are dedicating our effort to providing leading-edge solutions in this fast-paced market.
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