SK Hynix Inc. has decided to lend 3.3 trillion won ($2.68 billion) to its Chinese entity in a show of commitment to its investment plans in China despite the coronavirus pandemic.
The South Korean memory chipmaker said Thursday it will lend 3.3 trillion won to its C2F fab in Wuxi, China to help it adopt advanced nano-processing lines.
This is the first time that Seoul headquarters has extended a loan to its overseas outpost. Since 2009, SK Hynix has backed funding by purchasing a total of $1.55 billion in new shares in the Chinese operation.
The C2F line in Wuxi was converted entirely into a cleanroom fab late last year, capable of adjusting DRAM chip output according to market conditions.
The C2 fab in Wuxi has been turning out memory chips from 2006. It was upscaled to C2F in April 2019.
SK Hynix shares edged down 0.5 percent, or 400 won, to finish Friday at 79,600 won.
By Chun Gyung-woon and Kim Hyo-jin
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