Monday, November 06, 2017
SK Hynix recently struck a deal with China's city government of Wuxi to expand its DRAM production capacity locally with total investment estimated at US$8.6 billion, according to China's local media reports. The additional capacity, when operational, will increase SK Hynix's DRAM output from Wuxi to 200,000 wafers built using 1Xnm technology.
While the reports said the company would build a new fab in the Chinese city, SK Hynix has clarified that the investment of US$8.6 billion is not for a whole new fab but for the expansion of current Wuxi fab over the long term.
SK Hynix's DRAM fab in Wuxi has been contributing to the company's growth since the start of its operations in 2006. At the end of 2016, the company unveiled plans to invest an additional KRW950 billion (US$853.8 million) in the expanding fab from July 2017 to April 2019.
SK Hynix currently produces about 130,000 wafers monthly at the Wuxi fab, which account for around half of the company's total DRAM production.
SK Hynix saw its revenues, operating profits and net profits reach record-high levels for the third consecutive quarter in the third quarter of 2017. During the quarter, the company's DRAM bit shipments and ASPs rose 17% and 6%, respectively, on quarter.
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