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March 19, 2024

SK hynix to build new DRAM plant in Korea

PUBLISHED : December 19, 2018 - 15:38

UPDATED : December 19, 2018 - 15:38

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[THE INVESTOR] SK hynix on Dec. 19 broke ground for its new semiconductor factory M16 in Icheon, Gyeonggi Province.

The company plans to invest 15 trillion won (US$13.30 million) for constructing the new chip manufacturing site.


SK Group Chairman Chey Tae-won



The plant, which will be built on a 53,000-square-meter land, is expected to roll out 1z nanometer DRAM chips based on extreme ultraviolet lithography, which helps create ultrafine patterns of circuitries on wafers.

In the chip segment, the letters x, y and z indicate high-, mid- and low-single digits -- a lower number indicates more sophisticated chip technology.

SK Group Chairman Chey Tae-won and Lee Seok-hee, who was recently named to helm the semiconductor business of the conglomerate, took part in the ground breaking ceremony. Park Sung-wook, former SK hynix CEO who now heads an ICT committee under the conglomerate, also participated in the event.

“SK hynix has made great strides in recent years despite many difficulties,” said Chairman Chey during the ceremony, encouraging executives and employees of the chip company to make further efforts to create a new success story.

The new plant, which is scheduled to be up and running as early as October 2020, is forecast to produce 80.2-trillion-won worth of chips, generating 26.2 trillion won in added value. Around 34,800 jobs, including some 3,000 at the manufacturing facilities, will be created by 2026.

When the construction is completed, the firm will have seven memory chip plants, including M11, M12, M15 in Cheongju, North Chungcheong Province, M14 in Icheon, and C2 in Wuxi, China.

While the anticipated dwindling demand and falling DRAM prices will likely overshadow the market next year, SK hynix has a positive view on the sector in the long term.

“Although there will be some difficulties in the short term, the semiconductor industry, especially the memory segment, will continue to grow,” said SK hynix CEO Lee.

Memory chips are expected to be in high demand as they play an integral role in a range of sectors, such as artificial intelligence, Internet of Things, 5G and autonomous vehicles.

By Kim Young-won (wone0102@heraldcorp.com)

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