SK Hynix Begins to Mass Produce NAND Flash Memory
Aug 25, 2014
SK Hynix's factory that assembles semiconductor chips in Chongqing, China, has commenced full operations. As a result, it will be possible to process an increasing number of products stemming from the conversion into nano-processing from micro-processing. On top of that, the plant is expected to play a role in meeting the increased demand for semiconductors in China.
According to industry sources on August 21, SK Hynix has started to mass produce NAND flash memory chips in a facility in Chongqing last month, after one year of construction that started July of last year with an investment of US$150 million. The opening ceremony will be an invitation-only event on September 26.
The facility in Chongqing has begun to assemble NAND flash memory chips produced by the plant in Chungju City, Korea. There are 1,200 people are working at the factory at the moment, and more people will be hired. The Korean chipmaker is planning to increase sales from the facility up to US$600 million by 2015, and to achieve US$1.6 billion in sales by 2018.
Currently, the global semiconductor industry is increasing production of wafers by more than 30 to 40 percent each year through the conversion to nm-scale architecture. As a result, SK Hynix is likely to successfully respond to an increase in production without enlarging existing plants.
The Korean chipmaker's move to target the Chinese market is also expected to gain momentum. China is the largest semiconductor market, which accounts for 40 percent of total consumption in the world. In particular, the demand for semiconductor memory chips is rapidly rising in the country, as the mobile device market continues to grow.
An official at SK Hynix said, “Through the establishment of the facility that assembles semiconductor chips, it will be possible to process rising assembly products caused by the conversion into nano-processing.” The official added, “Our company anticipates that we will be able to further strengthen our competitiveness in the global market as a result.”
Source: BusinessKorea