Local media reported the company plans to produce 200mm wafers for the Chinese market starting in 2020. This would be accomplished by adding production lines to a DRAM facility in the southeastern Chinese city of Wuxi, Jiangsu Province. SK Hynix is making memory chips there and plans to expand its plant for DRAM.
Analysts say the joint venture is a good way for SK Hynix to limit risk while still devoting resources to the foundry segment.
“I think the Chinese partner is the local government of Wuxi, which has kept a good relationship with the company,” said SK Kim, an analyst at Daiwa Capital Markets. “It is a win-win project for both of them because SK Hynix can cut risks while the Chinese partner can draw investments.”