China is a major consumer of semiconductor chips. However, as the U.S. government has established various barriers to cut off the sales of semiconductors to certain commercial electronics manufacturers in China, it is bound to promote the improvement of China's domestic semiconductor supply capacity.
Facing the huge market of China, SK Hynix has begun to quietly deploy.
Not long ago, SK Hynix acquired Intel’s NAND flash memory business and the Dalian plant. Recently, according to BusinessKorea reports, SK Hynix is expanding its foundry business in China.
It is reported that 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 to a joint venture under the group in Wuxi, China.
As a memory supplier, since 2020, SK Hynix has begun to expand its business from storage semiconductors to foundry business. BusinessKorea reported that in the Sino-US trade dispute, the removal of manufacturing equipment from South Korea is seen as a strategic move to further expand its foundry market in China.
SK Hynix System IC sold 1,206 pieces of semiconductor equipment to SK Hynix System IC`s joint venture in Wuxi, China, for 194.2 billion won (approximately RMB 1.15 billion), accounting for 29.2% of the former’s total assets.
In fact, the equipment sold in this batch is a follow-up action that Hynix announced in July to move the Cheongju M8 factory of SK Hynix System IC to China.
The company plans to move its 200mm wafer production line in Cheongju City to China to OEM low-end products. In South Korea, Hynix’s foundry business will focus on high value-added products, including 300mm wafer image sensors.
SK Hynix System IC's technical capabilities
SK Hynix System IC is a foundry company established by SK Hynix in 2017 to ensure that the new growth engine stays away from storage semiconductors. SK Hynix system ic has a process from 57nm to 0.35um. It provides a proven (mass production) process platform for Large DDI customers, power management and CIS Fabless customers. In addition, it is also developing Mixed-Signal (including MTP and Embedded Flash IP). ) And MEMS process platform. The company established a joint venture with WIDG, an investment company of the Wuxi government in China, in 2018, and completed the construction of the fab in the first quarter of 2020, which is currently in the trial production stage.