SK Hynix reorganized their semiconductor consignment production (foundry) business into a two top system. They will adopt an independent management system in their foundry subsidiaries, SK Hynix System IC and Key Foundry, to target Chinese and Korean markets simultaneously.
SK Hynix carried out a reorganization of the foundry business and appointed Sang-hwa Lee, the former head of the SK Hynix System IC’s Wuxi subsidiary FAB in China, as the executive in charge. CEO Dong-jae Lee had been concurrently managing SK Hynix System and Key Foundry. CEO Lee will now only be in charge of Key Foundry and focus on targeting the Korean market.
This has been seen as a measure to improve the expertise of the foundry business. It has been interpreted that a sole CEO has been appointed at SK Hynix System for the Chinese market. CEO Sang-hwa Lee joined Hyundai Electronics Memory Research Center, the predecessor of SK Hynix, and he is evaluated as a technical engineer for Wuxi FAB, for things like, FAB construction, equipment setup, and cleanroom renovation. It is a strategy to target the Chinese market centered around experienced experts.
Competition in the Chinese foundry market is heating up around 8-inch semiconductors. According to Semiconductor Equipment and Material Institute (SEMI), China is planning to construct 31 manufacturing factories by 2024. It is expected that there will be a demand in China for things like image sensors and display drive chips, and that there will be demand for changes to 6-inch and 8-inch products from the existing 4-inch ones. SK Hynix System IC’s Wuxi FAB has been designed to be able to actively respond to China’s demand for 8-inch semiconductors, playing the role of Mother FAB.
The Key Foundry appears to respond to the Korean market. The Cheongju foundry factory will be advanced to 8 inches and will focus on the production of high-value industry and automobile products. The Key Foundry will mainly target products like electrical power control semiconductors, micro controller units, and display drive chips.
Following SK Hynix System IC, SK Hynix acquired Key Foundry and expanded the scope of their foundry business. Based on 8-inch wafers, they have secured production capabilities of 200,000 sheets per month.
Reporter Ji-woong Kim (jw0316@etnews.com)