SK Hynix Inc., the world’s second-largest memory chipmaker, has completed expansion in its fab operation in China, on schedule to keep ahead in the technology migration and capacity against fast Chinese ascension.

SK Hynix on Thursday held a completion ceremony of C2F, an expanded fabrication line in Wuxi, China. The ceremony was attended by about 500 guests including Communist Party of China Municipal Li Xiaomin, Korea’s counsel general in Shanghai Choi Young-sam, and SK Hynix CEO Lee Seok-hee.

The completion of C2F – an expansion of SK Hynix’s existing C2 dynamic random-access memory (DRAM) fabrication line – comes after the company announced plans in 2016 and poured in a total 950 billion won ($835.6 million) from June, 2017, to this month, to secure new production space.

The 58,000 square meter facility is a one-storied fabrication line, similar in size with its existing C2 fab, SK Hynix’s first fabrication line dedicated to producing 300 millimeter wafers. The C2 fab in Wuxi has been producing DRAM chips since 2006 but there emerged issues such as insufficient floor space in 2014 and 2015 due to increased process steps and bigger equipment, calling for the need for cleanroom expansion.

SK Hynix first launched operations of C2F in early January and started producing DRAM chips. The company plans to flexibly decide on the period of bringing in additional equipment depending on market conditions.

Kang Young-soo, executive director at SK Hynix overseeing its Wuxi fabrication line, said that the latest expansion has allowed the company to secure mid- to long-term competitiveness of the Wuxi fab. The company will run C2F fab together with the existing C2 fab to enhance production and operation efficiency.

By Kim Gyu-sik and Lee Eun-joo

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]