SK Hynix

SK Hynix May Sell Unfinished China Factory: Report

SK Hynix is ‚Äč‚Äčreportedly delaying the completion of its second 3D NAND facility in Dalian, China. This choice was in response to shrinking reminiscence market demand and US restrictions on exports of superior manufacturing unit instruments to China. DigiTimesrefers to South Korean media. Additionally, as a consequence of issues with importing wafer manufacturing unit gear to China, SK Hynix could even promote the fab shell after completion earlier than transporting the wafer manufacturing unit instruments.

SK Hynix took over Intel’s 3D NAND manufacturing and SSD enterprise in 2021, buying the Dalian web site with a reminiscence manufacturing unit. In Might 2022, the corporate started to build A further fab on web site after Intel has taken care of all of the heavy lifting with infrastructure, planning, and permits from native authorities. Usually, it takes a couple of 12 months to construct a fab shell. Nonetheless, in keeping with sources acquainted with the matter as quoted by the media outlet, the development has not approached the completion stage, and talks relating to supply and set up haven’t but been held with suppliers of wafer mill gear. Within the worst case situation, SK Hynix could resolve to promote the constructing reasonably than set up costly home equipment.

There are a number of components that affect SK Hynix’s choice to equip the plant.

First, US wafer manufacturing unit gear (WFE) producers should get hold of a particular export license from the US Division of Commerce to export instruments to China that can be utilized to make 3D NAND with 128 or extra layers. To make the manufacturing unit aggressive in the long term, SK Hynix wants to focus on 200 and even 300-layer 3D NAND manufacturing nodes.

Each Samsung and SK Hynix obtained official exemptions from the US authorities to export their required manufacturing gear from October 2022 to October 2023 to China. Nonetheless, it’s unclear whether or not this era might be prolonged for one more 12 months.

Media reviews recommend that it’s unimaginable to convey all automobiles to China earlier than October 2023 as a consequence of lengthy lead occasions, and it’s unlikely to obtain the required WFE earlier than October 2024. Additionally, American engineers from firms like Utilized Supplies, KLA, and Lam Analysis at the moment are banned from servicing semiconductor crops in China with out a authorities export license, so even putting in bought automobiles could be a downside.

Second, even when SK Hynix manages to get and set up all of the instruments it must China on time, it’s going to nonetheless must run the manufacturing unit, which means exporting further parts from the US, Europe and Japan and probably hiring US engineers. To guard the WFE.

Lastly, as a result of delicate demand for 3D NAND and DRAM, SK Hynix decreased its 2023 capital expenditure price range by roughly 50% in comparison with 2022, which required a versatile adjustment to the Dalian plant’s building timeline. Because of this, the corporate could not come up with the money for to spend money on Chinese language factories. Building another big factory in South Korea.

Because of this, some within the trade really feel that SK Hynix could promote its new Dalian plant on to a Chinese language firm after building is full, with out putting in gear.

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