SK hynix CEO Lee Seok-hee speaks during a completion ceremony of the firm's DRAM manufacturing firm in Wuxi, China, Thursday. / Courtesy of SK hynix



By Baek Byung-yeul



SK hynix completed the construction of its new DRAM manufacturing plant in Wuxi, China, the chipmaker said Thursday.



The firm invested 950 billion won ($836 million) in the new DRAM plant, called C2F. With the new plant, SK hynix can increase its monthly production capacity to 180,000 wafers. A wafer is used in the semiconductor manufacturing process as a substrate for chips.



SK hynix held a ceremony to commemorate the completion of the C2F plant. Occupying a 58,000-square-meter site, the new plant partially completed the construction of a clean room and started manufacturing DRAM chips, the firm said.



The new DRAM plant will help the firm widen the technology gap with the fast-growing Chinese chipmakers.



"With the expansion of the Wuxi factory we are able to secure the firm's mid- and long-term business plan," said Kang Young-soo, senior vice president of the firm. "By operating both the existing C2 plant and the new C2F plant we will maximize the efficiency of manufacturing operations."



The chipmaker has four manufacturing sites, two in Korea and another two in China. The Wuxi plant, which has been in operation since 2006, has accounted for about half of the firm's DRAM production.



While the semiconductor industry has been experiencing a downturn due to a sharp price drop caused by weak memory chip demand and a supply glut, the firm said it proceeded with the expansion plan as planned. The firm said that having an additional plant is to adopt micro-fabrication of DRAM chips not increase its production outputs, saying it will continue to control its investment volume in response to oversupply.



"We completed the expansion of the new DRAM plant in China as planned. We didn't consider the current market situation," an SK hynix spokesperson said. "The new C2F plant is a pre-emptive move of SK hynix. It is essential for us to have additional fabrication space because it will help the firm respond more agilely to market changes."



The official added the firm's recent announcement to build a semiconductor cluster, which will house four semiconductor manufacturing plants starting from 2022 in Yongin, Gyeonggi Province, is also in line with this move.

