According to BusinessKorea, SK hynix is expanding its foundry business in China.

SK hynix System IC, a subsidiary of SK hynix specializing in foundry business, has sold all its semiconductor production equipment at its Cheongju plant in Chungcheongbuk-do, South Korea, to a joint venture under the group in Wuxi, China.

SK hynix System IC is a foundry company established by SK hynix in 2017 and established a joint venture with WIDG, an investment company of the Wuxi government of China, in 2018. The construction of its fab has been completed in the first quarter of 2020 and the fab is currently in the trial production stage.

According to reports, SK hynix System IC sold 1,206 semiconductor production equipment to the Wuxi joint venture for 194.2 billion won (approximately 170 million U.S. dollars), accounting for 29.2% of the former's total assets.

According to SK hynix's plan, after moving its 200mm wafer production line in Cheongju City to China, it will be used as foundry for low-end products. In South Korea, SK hynix’s foundry business will focus on high value-added products, including 300mm wafer image sensors.