• Company to break ground in October, complete construction in early 2025 with plan to invest 15 trillion won over 5 years
• M15X to be first new fab since company commemorated 10th anniversary this year
• Investment during economic downturn to lay foundation for future growth

SK hynix Inc. (or “the company”, www.skhynix.com) announced today that it will build the M15X(eXtension), a new fabrication plant, in Cheongju, Chungcheongbuk-do, in preparation for future growth.

The company will start construction of the M15 extension on the site it secured previously earlier than initially planned, considering various market situations.

The new plant will be built from October on the 60,000㎡ land located in the Cheongju Technopolis industrial complex and completed early 2025. A total of 15 trillion won will be injected over the next five years to build the fab and set up production facilities. The fab will be a two-story building equivalent to a combination of M11 and M12 in size.

As for the next M17 fab, the company will decide construction plan after reviewing overall business environment including changes in the semiconductor business cycle.

“Looking back on the past 10 years, SK hynix could grow into a global company as it boldly carried out investment during crisis,” said Vice Chairman and Co-Chief Executive Park Jung-ho. “As we look to prepare for the next 10 years now, I believe starting the M15X will be a first step to lay foundation for a solid future growth.”

SK hynix has so far solidified its leadership in the memory market through preemptive and bold investments despite rapid changes in business environment. In 2012, when the broader industry was scaling back investments and the company was in the red, SK hynix decided to increase investment by more than 10% compared with a year ago, resulting in a dramatic turnaround by the end of the year. Market uncertainties continued to linger, but in 2015, the company built the M14 fab in Icheon to prepare for the next boom in the memory business, which led to record-high financial results for two straight years from 2017.

Since it became a member of SK Group in 2012, SK hynix has pushed forward investments for the next 10 years in accordance with the Future Vision it has made public in 2015. The Vision was the company’s pledge that it will invest 46 trillion won from 2014 to build three more fabrication plants including the M14 in Icheon. Such promise was met earlier than targeted following completion of the M15 in Cheongju and the M16 in Icheon in 2018 and 2021, respectively.

Demand for memory chips is rapidly falling in the wake of the global economic slowdown and instability of the supply chain, but experts foresee that the business will start to recover steadily from 2024 and rebound in 2025 as the memory business cycle is increasingly getting less volatile in recent years.

The plan to build the M15X comes as SK hynix prepares for the next upturn expected to come in 2025. With the construction of the M15X, the company will be ready to provide more memory chips when the industry enters a boom again.

About SK hynix Inc.

SK hynix Inc., headquartered in Korea, is the world’s top tier semiconductor supplier offering Dynamic Random Access Memory chips (“DRAM”), flash memory chips (“NAND flash”) and CMOS Image Sensors (“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 Luxembourg Stock Exchange. Further information about SK hynix is available at www.skhynix.com, news.skhynix.com.

Media Contact

SK hynix Inc.
Global Public Relations

Technical Leader
Kanga Kong
E-Mail: global_newsroom@skhynix.com

Technical Leader
Jaehwan Kevin Kim
E-Mail: global_newsroom@skhynix.com

The post SK hynix to Build M15X Fab in Cheongju first appeared on SK hynix Newsroom.

We are honoured to have had an in-depth conversation with Sang-hwa Lee, the head of Wuxi FAB, and get to know his story of 26 years with SK hynix. In this interview, Mr. Lee also revealed his vision of establishing Wuxi FAB as a world-class production base with safety and happiness, fulfilling corporate responsibilities and giving back to the local community.

Hand in Hand for 26 years: Growing Together with SK hynix

Could you please introduce yourself?

My name is Sang-hwa Lee. The Korean pronunciation of my name is the same as that of a famous person in Korea, so it is very easy to remember.¹ After graduating with a master’s degree in 1996, I joined the Hyundai Electronics Co., Ltd, the predecessor of SK hynix. I have been working in the company for nearly 26 years and currently serve as the head of SK hynix Wuxi FAB.

What kind of positions have you held during your time at SK hynix?

At the beginning, I worked as a semiconductor process engineer in the research institute, and progressed on to a manufacturing FAB technical engineer. I worked at the institute in two separate periods for a total of 10 years. For the rest of the time, I have worked on projects such as FAB construction and renovation of the cleanroom etc.. After joining the company, I got married and raised two children. Looking back now, SK hynix has been with me for almost half of my life.

Could you please tell us about some of the beneficial internal trainings that you have received during your years at SK hynix?

Among the company’s internal education programs, the ones that impressed me the most were the “Phoenix Leadership Education” from a long time ago, and the “Executive Guidance Program” in 2018. The notes I took during the “Phoenix Leadership Education” are still in my desk. In one of the notes, I wrote down the story of the 67-year-old founder of KFC, Colonel Harland Sanders, who finally found success on his 1,010th attempt²! I share these notes with younger generations in the hope that the principles and stories will inspire them. During my temporary return to Korea in 2018, I participated in the “Executive Guidance Program”, an education project targeted at company leaders. This educational project not only gave me a lot of new ideas, but also strengthened my values and allowed me to further mature.

How did you overcome the difficulties and challenges you have encountered at work?

I never give up no matter how difficult the conditions may be. When facing new challenges, I would constantly discuss with team members to formulate plans and refine them, trying my best to find a way to solve the problems. In my opinion, as long as we focus on the two solutions instead of the other 998 excuses to fail, and work together with people we trust, we can overcome any difficulties.

Mr. Lee’s notes during his training at “Phoenix Leadership Education”

Attending SK hynix’s Happiness Talks to improve communication with employees

Leading Wuxi FAB: Building a world-class production base

In your opinion, what is the key to building Wuxi FAB into a world-class production base?

First, SECURITY. I will try to find and improve the problem areas across the entire workplace. We want employees to be able to do their jobs in a safe working environment, so that they can clock on, clock off and return home in safety, which is actually way more important than it may sound like. In addition, we must have strict safety regulations and abide by them, while improving everyone’s safety awareness by encouraging good habits in their daily lives.

Second, QUALITY. Our quality management organizes and manages the quality of raw materials and products. And we spare no effort or resources to create world-class quality, ensuring the quality indicators are at the highest level.

Third, COST COMPETITIVENESS. Due to the nature of manufacturing industry, in order to maximize operating profit, we are focusing on reducing input costs and increasing production while maintaining quality.

How have your years of working at SK hynix helped with your leadership skills?

In the regular executive surveys, there is usually a section set aside for feedback. Feedbacks are often divided into three parts: strengths, weaknesses, and areas with the biggest room for improvement. It is amazing that “communication” appeared in all three parts of my feedbacks. I am quite trusting and have a strong tendency to communicate in many ways. This brings both advantages and disadvantages: the advantages are the ability to communicate actively, while the weakness is that my communication can sometimes be overly forceful. In this way, the area where I need to improve is also “communication.”

Working together to conquer “the highest peak of happiness”

SK hynix has long adhered to the SHE management system. How does the Wuxi FAB improve employee happiness?

This year, we launched the “Happiness Climbing Line” activity. In order to embody the abstract concept of happiness, we established the goal of “conquering the highest peak of happiness.” For Wuxi FAB, this is a new challenge in the pursuit of happiness!

The first stage of the “Happiness Climbing Line” is to launch happiness activities centered on leadership: firstly, leaders offer monthly one-on-one mentoring, assistance and check-ups for team members with a focus on their work; secondly, through Happiness Talks within the team, members discuss how they pursue happiness in the workplace; thirdly, collaborations between teams are organized to strengthen the organization; fourthly, gratitude is expressed through the Hy-thanks system; last but not least, in order to improve the happiness of team members, we are reducing unnecessary business activities. We also conduct surveys on a regular basis to obtain feedbacks and evaluate the current “Altitude of Happiness” in order to better boost employee happiness.

In addition to this, in May this year, to motivate members who have worked for the company for over 10 years, we held the “We Are SK hynix” event. At the dinner that day, feeling the happiness of those who have worked at SK hynix for more than 10 years, and the warmth of their families’ unconditional support, I was also filled with happiness.

Mr. Lee at the We Are SK hynix event for members who have worked for the company over 10 years

Mr. Lee at the 2021 Happiness Sports Meeting at Wuxi FAB

Responsibility, Gratitude and Giving Back: striving to enhance social value

What are the efforts made by the Wuxi FAB in order to carry out environmental protection and cope with climate change?

For those who need to use a lot of electricity to produce semiconductors, utilization of renewable energy is an urgent task and an important part of the “Green 2030” plan. Wuxi FAB has been cooperating with the head office’s renewable energy team since 2020, and have pledged to achieve 100% renewable energy use by 2022. This will serve as a leading force to achieve the goal of 100% renewable energy use in Icheon/Cheongju/Chongqing/Wuxi. At the same time, Wuxi FAB has also continued to carry out activities to save water resources, such as: subdividing management from the production stage, introducing advanced equipments and technologies, and using deionized recycled water, water from steam condensation, and cooling water for air-conditioning. Through these measures, as of 2020, 28% of the total water usage in Wuxi FAB will be externally recycled water.

What do you hope to give back to the local community in Wuxi through the SK hynix Wuxi Foreign Language School?

In order to promote the sustainable development of Wuxi FAB, we are exploring various ways to produce social value while creating economic value. As part of this, the SK Hynix Foreign Language School, which was established in September this year, is committed to providing better education for children of SK hynix employees and local residents, as well as to contribute to cultivating international elites. Here I would like to first sincerely express my best wishes to all the students who have entered SK hynix Wuxi Foreign Language School! I also look forward to seeing these future elites enjoying their healthy school life, and pursuing their own dreams!

The opening day of SK hynix Wuxi Foreign Language School

¹Sang-hwa Lee is also the name of a former South Korean speed skater who was a gold medalist in the 500-meter sprint at the 2010 Sochi Winter Olympics, and a legendary figure in Korean women’s speed skating, known as the “Ice Queen “.
²KFC founder Colonel Harland Sanders spent two years attempting to sell his fried chicken recipe to 1,009 restaurants in the early days of his business, but was rejected. It was not until his 1010th attempt that a restaurant finally accepted his secret recipe, and he went on to become successful.

The post Building a World-Class FAB with Safety and Happiness: Interview with Sang-hwa Lee, Head of Wuxi FAB first appeared on SK hynix Newsroom.

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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.

Seoul, December 22, 2016

K hynix Inc.(‘the Company’, www.skhynix.com) announced it will construct a new memory semiconductor FAB in Cheongju, Chungcheongbuk-do to meet increasing NAND Flash demand. This is a part of a mid/long-term investment plan that SK hynix declared at M14 completion ceremony in August 2015. At that time, the Company said it could spend 46 trillion won to set up 3 new FABs in Icheon and Cheongju including the M14.

The new FAB will be located in a Cheongju Technopolis site. SK hynix starts a design within next month then begins construction of the shell and the cleanroom in August 2017 to be completed in June 2019 with total investment of 2.2 trillion won. Equipment installation into the FAB shall be decided considering market conditions as well as the Company’s migration plans.

SK hynix has been expanding its NAND Flash manufacturing FAB in Cheongju since the completion of which in 2008. Plus, it starts to utilize the upper floor of the M14 to manufacture 3D NAND Flash from next year. Nevertheless, in order to grow further, it is important to secure production facilities in advance to deal with NAND Flash market growth to be led by 3D NAND solutions. Additionally, considering it takes more than 2 years normally to build a semiconductor FAB, the Company has determined to build the additional FAB as a result.

“The new FAB to be constructed in Cheongju will become a part of our key production facilities to gear up for the upcoming fourth industrial revolution,” said Sung Wook Park, CEO of SK hynix, “Sincerely appreciate great assistance from the National, Chungcheongbuk-do and Cheongju government officials in the construction of the new FAB at a proper time,” he added.

Meanwhile, SK hynix plans to invest additionally in present Wuxi DRAM FAB to maintain its competitiveness in productivity. The Wuxi FAB has been contributing to the Company’s growth since its operation start in 2006, currently representing a half of the Company’s total DRAM production. Reduction of manufacturing efficiency is inevitable due to space insufficiency considering the increasing number of process steps due to process technology migration which requires more floor space. Hence, to make up for the possible loss of wafer capacity, the Company has decided to expand the Wuxi cleanroom space with total investment of 950 billion won from July 2017 to April 2019. With the investment, the Company plans to retain its competence in productivity and lead in DRAM industry.

About SK hynix Inc.

SK hynix Inc., headquartered in Korea, is the world’s top tier semiconductor supplier offering Dynamic Random Access Memory chips (“DRAM”), Flash memory chips (“NAND Flash”) and CMOS Image Sensors (“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 SK hynix is available at www.skhynix.com.

Media Contact

SK hynix Inc.
Public Relations

Assistant Manager
Heeyoung Son
Phone: +82.31.8093.4719
E-Mail: heeyoung.son@sk.com

The post SK hynix Inc. to Construct a Cutting Edge NAND Flash FAB in Cheongju first appeared on SK hynix Newsroom.