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July 17, 2018

SK hynix to build foundry line in China

PUBLISHED : July 10, 2018 - 16:39

UPDATED : July 10, 2018 - 16:39

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[THE INVESTOR] Korea’s No. 2 chipmaker SK hynix said on July 10 it will establish a joint venture in China to build a new 200 mm wafer analog foundry production line.

The chipmaker said its wholly owned subsidiary SK hynix System IC will build a new production line in the second half of this year in Wuxi, eastern China, along with Wuxi Industrial Development Group, an investment firm run by the regional government.

SK hynix System IC, launched last year, focuses on its foundry business, which makes chip designs for other companies that do not have semiconductor fabrication plants.

There has been a rumor that SK hynix has been seeking to open a joint venture in China to expand its foundry business after the launch of the sister company.

SK hynix plans to relocate some of the foundry equipment in Korea to China but to retain research and development-related facilities here.

The construction of the new factory is expected to be completed in the second half of 2019. SK hynix said it will ship its production facilities from its Cheongju production line, 130 kilometers southeast of Seoul, to its new Chinese plant throughout 2021.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)

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