SK Hynix’s foundry factory in Wuxi, China has started operations.
According to local media Wuxi Daily, SK Hynix’ subsidiary, Sk Hynix System IC, held a factory production ceremony on December 12.
SK Hynix System IC’s factory can handle 8-inch wafers. China has over a thousand fabless companies.
According to IHS, China’s fabless market was worth US$25.5 billion in 255. This is expected to grow to US$68.6 billion by 2021.
SK Hynix System IC is also positioned to benefit as local foundry SMIC has recently been added to the list sanctioned by the US government.
The company formed a joint venture with the Wuxi government in September 2018. The factory has been completed in 2019 and SK Hynix has been shifting some of its equipment at its M8 fab in South Korea to the one in China. Necessary equipment will also be transferred by the end of 2021.
The Chinese fab will produce while research and development will be done in South Korea.