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Home › MarketWatch › The Investor: SK Hynix delays production in China
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The Investor: SK Hynix delays production in China

SemiMediaEdit
June 20, 2019

According to South Korean media reports, due to the continuous decline in DRAM memory chip prices, coupled with the recent ban on Huawei, SK hynix is planning to delay the commissioning of the world's most advanced memory chip factory in Wuxi, China.

The report also pointed out that SK hynix's sales in China last year was 15.8 trillion won, accounting for nearly 40% of its total revenue, of which Huawei accounted for 12%. According to reports, an industry insider hinted that the delay of the project is related to the decline in demand for memory chips from Chinese partners such as Huawei.

On April 18 this year, SK Hynix Wuxi No. 2 factory (C2F) held a completion ceremony. The C2F is an expansion project based on the original DRAM production line C2. After the completion of the C2F project, the SK hynix Wuxi plant will have a capacity of 180,000 wafers per month, and annual sales are expected to reach $3.3 billion.

SK hynix C2F has a total investment of 8.6 billion US dollars, of which 1.6 billion US dollars is used to build a new 33,000 square meters clean workshop and its ancillary facilities, and 7 billion US dollars to purchase the world's most advanced semiconductor production equipment.

At present, SK hynix owns about 35% of the Chinese DRAM market. After the C2F project is fully completed and put into production, SK Hynix will occupy more than 45% of the Chinese DRAM market share.

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