South Korean media reported that due to the continuous decline in DRAM memory chip prices and the recent impact of Huawei's events, SK hynix is planning to delay the commissioning of the world's most advanced memory chip factory in Wuxi, China. The Chinese market is SK Hynix's largest overseas market. Last year, China's revenue accounted for 40%, of which Huawei accounted for 12% of revenue. However, the current environment has changed. Not only Huawei's sanctions have affected market demand, but continued. The constant memory price drop also makes SK Hynix face a loss.
Under such a double blow, sources close to SK Hynix said that SK hynix is preparing to delay the accelerated mass production of the Wuxi C2F plant, which was officially completed in April. Hynix originally planned to accelerate mass production in Q3.
SK Hynix Wuxi No. 2 Plant C2F project was announced in December 2016, signed in October 2017, started in June 2017, and equipment moved in November 2018, with a total investment of 8.6 billion US dollars, of which 1.6 billion US dollars for construction The new plant and ancillary facilities of 33,000 square meters, $7 billion for the introduction of the world's most advanced memory chip production equipment.
As an extension of the existing plant (C2), the new plant construction cycle will be the largest single-capital investment, the most monthly production capacity and the most advanced 10nm process memory chip production base in the world from 2017 to 2026. Up to 180,000 300mm wafers with annual sales of $3.3 billion.
At present, SK Hynix has a 35% share of the Chinese memory chip market, and Wuxi No. 2 is expected to rise to over 45% after it is put into use.
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