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| A ceremony commemorating the completion of SK hynix's DRAM plant is held in Wuxi, China, April 18, 2019. Courtesy of SK hynix |
By Baek Byung-yeul
SK hynix will jointly invest a total of $310 million together with Chinese companies to create a semiconductor industrial complex in Wuxi, Jiangsu Province, where its DRAM memory chip plant is located.
According to the Hong Kong-based news outlet, The South China Morning Post, on Oct. 8, the local government of Wuxi began construction of the new industrial complex, adding that there were no details about the facilities to be built on the site or its completion date.
SK hynix has joined the local government's project in an effort to strengthen cooperation with local companies and communities, as well as improve its supply chain. The investment will be used to build semiconductor infrastructure in the complex and SK hynix elaborated that the investment will not be used to expand its existing plant there.
In Wuxi, SK hynix has operated a chip-manufacturing plant since 2006. The company added another DRAM manufacturing plant there in 2019, investing 950 billion won. With the new factory, called C2F, SK said that it can increase its monthly-production capacity to 180,000 wafers. Wafers are used in the chip-making process as a substrate for chips.
The industrial complex development plan is gaining attention, as the project was announced at this time when China is focusing on attracting investments by offering various benefits, including tax credits and subsidies.
The South China Morning Post said that the development project "reflects the continued massive investment in semiconductor-related initiatives, as Beijing is determined to increase the nation's self-reliance amid a fierce tech rivalry between China and the United States, as well as a global chip shortage."
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