SK Hynix Inc., a South Korean chipmaker, has said it will construct a new fabrication plant (fab) at its headquarters in Icheon, Gyeonggi-do. The investment aims to respond to the growing demand for memory chips and to secure a future growth engine.
Construction on the 53,000 sq m site in Icheon will begin in late 2018 and is planned to be completed in October 2020.
SK Hynix will invest 3.5 trillion won in the project. The production portfolio of the fab shall be decided considering future market conditions as well as the company’s technology capability.
The company said it continues to expand its production capacity with the M14 production line in Icheon, the construction of the new Fab in Cheongju and the expansion of the cleanroom space at Wuxi Fab, which are expected to be completed in the second half of this year.
"Nevertheless, it is essential to make additional investments to meet growing memory demand. As the dimensions of semiconductor manufacturing equipment are getting larger, it is also important to secure enough cleanroom space in advance. All these factors have contributed to the company’s investment plan," read a statement.
New fab in Icheon is the third facility setup after the M14, which was completed in 2015, followed by a Fab in Cheongju, which is under construction
Since its incorporation into the SK Group, SK Hynix has strengthened its competitiveness through continued investment and capacity expansion. The new Fab in Icheon is the third facility setup after the M14, which was completed in 2015, and another Fab in Cheongju, which is under construction.
After the construction of the new site is completed, and equipment wholly installed, the total investment into the three Fabs will even exceed 46 trillion won; the company said.
SK Hynix will continue to make efforts to solidify its industry leadership as well as to contribute to the national economy and social value creation.
