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Seoul, Apr 18, 2019

SK hynix Inc. (or ‘the Company’, www.skhynix.com) today announced that it held a ceremony celebrating the completion of an expanded fabrication plant (or ‘C2F’) in Wuxi, China, on April 18th.

C2F is an expansion of the existing DRAM production line, C2, in Wuxi. The Company decided to expand its production line in 2016 in order to solve the shortage of production space due to technology migration.

About 500 people attended the ceremony, including Guo Yuanqiang, Vice Governor of Jiangsu, Li Xiaomin, Party Secretary of Wuxi, Choi Youngsam, Consul-General in Shanghai, Lee Seok-hee, Chief Executive Officer of SK hynix, and representatives of clients and business partners.

SK hynix signed a contract with Wuxi City, Jiangsu Province, China, in 2004 to establish a local factory and completed the production line (C2) in 2006 to start producing DRAM. C2 is the Company’s first 300mm FAB and has played a major role in SK hynix’s growth to date. However, with technology scaling, the number of processes has increased and the equipment has become larger, which led to the shortage of the cleanroom space. SK hynix, therefore, has invested a total of 950 billion KRW from June 2017 to April 2019 to secure additional production space.

C2F is a one-story FAB with a building area of ​​58,000m2 (316m long, 180m wide, 51m high), similar in size to the existing C2 FAB. SK hynix has completed the construction of part of the cleanroom of C2F, installed equipment and started producing DRAM. The timing of additional cleanroom construction and equipment installation will be determined flexibly according to market conditions.

“Through the completion of C2F, we have secured mid- and long-term competitiveness of SK hynix’s Wuxi FAB,” said senior vice president Kang Young Soo, the Head of Wuxi FAB. “We will maximize the production and operation efficiency of the Wuxi FAB by operating C2F and C2 as a “One FAB.”

<C2F Establishment History>
– Announcement of the Construction of the Expanded FAB in Wuxi in December 2016
– Started construction in June 2017
– Started to bring in equipment in November 2018
– Completed in April 2019

Media Contact

SK hynix Inc.
Global Public Relations

Technical Leader (Assistant Manager)
Hyun Kyung Olivia Lee
Phone: +82.31.8093.4771
E-Mail: hyunkyung14.lee@sk.com

Technical Leader (Senior Manager)
Eun Suk Yixi Lee
Phone: +82.31.8093.4790
E-Mail: eunsuk8.lee@sk.com

The post SK hynix Completes Expanded Fab (C2F) in Wuxi, China first appeared on SK hynix Newsroom.

hynix Semiconductor Inc.(‘hynix’ or ‘the Company’, www.hynix.com), today announced that the Company will establish a back-end joint venture in China with Wuxi Industrial Development Group Company Ltd.

hynix will sell its owned ‘Back-End’(‘back-end’) equipment in Korea and China to the established joint venture as part of its efforts to boost financial efficiency and secure 300 million US dollors.

By establishing a back-end joint venture, the portion of outsourcing of backend manufacturing will be extended up to 50% from the current of 30%. From this, hynix will more focus on the core business of ‘Front-End’ (‘front-end’) manufacturing and extend R&D investment to the fullest.

hynix had established the Joint Venture, hynix-Numonyx Semiconductor Ltd. (‘HNSL’), with ST Microelectronics(Numonyx V.A. since 2008) in 2005 and HNSL has operated two fabrication facilities on the site. With the new back-end facility in China, hynix will have both front-end and back-end facilities integrated in the area.

By implementing the integrated manufacturing system, hynix will achieve reduction in both production and delivering costs. In this regard, the Company will also be able to strengthen its dominant position in Chinese market.

Many of DRAM manufacturers have separately managed back-end business in abroad in order to strengthen effectiveness of their investment and manufacturing.

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About hynix Semiconductor Inc.

hynix Semiconductor Inc. (HSI) of Icheon, Korea, is the world’s top tier memory semiconductor supplier offering Dynamic Random Access Memory chips (“DRAMs”) , Flash memory chips (“NAND Flash”) and CMOS Image Sensor (“CIS”) for a wide range of distinguished customers globally. The Company’s shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about hynix is available at www.hynix.com.

Media Contact

CORPORATE COMMUNICATIONS

Assistant Manager
Seong-Ae Park
Phone: +82.2.3459.5325
Fax: +82.2.3459.5333
E-Mail: seongae.park@hynix.com

The post hynix to Establish a Back-End Joint Venture in Wuxi, China first appeared on SK hynix Newsroom.

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Geneva, Switzerland, and Seoul, Korea, April 28, 2005

Following the announcement on November 16, 2004, of the signing of a joint venture agreement between two of the world’s largest semiconductor manufacturers, STMicroelectronics (NYSE:STM) and hynix Semiconductors (Bloomberg: 000660 KS), the companies today laid the first stone at the site of their front-end memory-manufacturing facility in Wuxi City, Jiangsu Province, China, in the presence of high-level municipal, regional, and state officials of China and Korea.

The new fab, which will manufacture both DRAM and NAND Flash memories, is a logical extension of the existing successful manufacturing relationship between hynix and ST and will provide both companies with front-row access to the rapidly growing Chinese market.

The Joint Venture is expected to be a firm base for hynix’s long-term competitiveness as the Company will be able to secure 12-in. manufacturing facilities with a minimum investment, utilize a cost-effective manufacturing environment and maintain its leading position in the fast-growing Chinese market.

The new semiconductor fab will also provide another global manufacturing facility to hynix that will resolve trade issues including countervailing duties imposed on the Company’s products in the U.S. and Europe. It will also position ST to better serve its key customers, especially in the Telecom and Consumer markets, allowing delivery of complete memory, multimedia processor, and system solutions in single packages, with leading-edge technologies and cost-competitive products.

In particular, the new fab will give ST access to high performance, low-cost DRAM chips, further enhancing its world-leading capabilities in delivering MCP (Multi Chip Package) stacked memories and SiP (System-in-Package) solutions. Ideally sited in Wuxi City, two hours from China’s most cosmopolitan and advanced city, Shanghai, the location features access to a large and highly-skilled labor pool, a robust and well-developed infrastructure, and room for expansion.

At the new fab site, an 8-in. wafer line is scheduled to begin production by the end of this year, initially with a stable manufacturing process transferred from hynix’ existing fabs in Korea. Shortly thereafter, a 12-in. wafer line will begin production in late 2006. Each line will supplement the world-class capabilities of both companies with extremely cost-competitive manufacturing capacity in the world’s fastest growing semiconductor and electronics market.

The China market is currently about 15% of the worldwide semiconductor market and is projected to grow at an annual rate of more than 20% through 2008. “hynix Semiconductor has obtained solid footing to be a global memory manufacturer as we have established a global manufacturing network that connects Korea, the United States and China.

Through the Joint Venture, hynix believes the cooperative relationship between ST, Wuxi and hynix will be further strengthened, and the new fab will be mutually beneficial for each party’s long-term growth,” said Eui-Jei Woo, Chairman and CEO of hynix Semiconductor. “With this Joint Venture, STMicroelectronics is further reinforcing its strong integrated presence in the world’s most exciting semiconductor market. Building on the successful collaboration that hynix and ST have already achieved in process and product developments that serve our complementary interests, this new venture in Wuxi City will make ST, which is already the second largest semiconductor supplier in China, even more competitive both here and around the world,” said Carlo Bozotti, President and CEO of STMicroelectronics.

The total investment planned for the project is US$2 billion. It will be financed with equity from both partners (hynix 67%, ST 33%), US$250M of long-term debt from ST, as well as a financing package from Chinese local financial institutions, which will involve debt and a long leasehold. ST and hynix are in the process of securing the required governmental approvals and financing package. In 2005, the equity investment from ST and hynix is expected to reach around US$375 million, split on a 1/3 – 2/3 basis.

The post hynix and STMicroelectronics Lay First Stone for Memory Manufacturing Fab in China first appeared on SK hynix Newsroom.

hynix Semiconductor Inc. (‘hynix’ or ‘the Company’) today announced it has contracted with Wuxi City, Jiangsu Province in China for setting up a plant in China. By completing the contract,

hynix explained it is able to obtain solid footing for the long-term competitiveness since the plant is expected to help in expanding manufacturing facilities for 12-inch wafers through the alliance with STMicro, enforcing cost competitiveness by utilizing low cost manufacturing environment, maintaining leading position in the Chinese market and resolving trade issues including countervailing duties.

In addition, hynix, which reported record profit for its second quarter and posted fourth straight quarterly profit, added it aims to be a leading memory chip manufacturer as the Company secured stable financial base for the business normalization.

hynix plans to complete construction of the China chip plant by the second half of 2005 and expects to start mass production in 2006.

The post hynix Contracted with Wuxi City for the China Chip Plant first appeared on SK hynix Newsroom.

In order to obtain validation from PBOC, Hyundai conducted a joint development project for one year with Hyundai Estie, a Korean venture firm specializing in smart cards. PBOC’s validation certifies that Hyundai’s smart card chip technology and Hyundai Estie’s COS technology are both world-class technologies. In 1998, PBOC established the technological and security standards for bank cards, electronic purses, transportation cards, social security cards, and other related products. Therefore, providers must obtain validation from PBOC in order to sell such products to the Chinese market. Hyundai has successfully completed all required tests for smart card chips, COS, Chip on Board packages, and plastic cards in an official PBOC test center, an independent testing institution operated by the Chinese government. Hyundai has agreed to supply 42 million units of product to Chinese System Integration( SI ) businesses over the next five years. Hyundai plans to export product valued at $5 million this year and $20 million next year, reaching a total of at least $100 million in exports over the next three years. Hyundai Estie Co. Ltd. is a company that was spun-off from Hyundai’s integrated circuit card business unit, which handles banking cards and related handsets, as well as SI business, including development of COS, the core technology of smart card chips. Hyundai Estie has contracts for K-CASH smart cards with five main Korean banks and plans to extend its business globally, including China.

The post Hyundai receives standard validation for electronic money in China first appeared on SK hynix Newsroom.