`SK Hynix System IC` to be launched

[Digital Times, Park Seul-gee] SK Hynix launches SK Hynix System IC, a wholly owned subsidiary of SK Hynix. The company will start the system semiconductor business in earnest and aims to catch two rabbits of memory and non-memory semiconductor as a future growth engine.

SK Hynix Systems IC announced on July 10 that it will strengthen its business competitiveness as a foundry specializing company with its launch ceremony at Cheongju headquarters in Chungbuk Province on July 10.

SK Hynix`s spin-off of the foundry business is due to the fact that it cannot be competitive in the foundry business, which is characterized by small-volume production of multiple types of products, due to its memory semiconductor-based business structure. SK Hynix is the leader in DRAM and NAND markets in the first and second quarters, with 28% and 11.5% respectively. On the other hand, the foundry market posted USD 104 million in sales last year, accounting for 0.2 % of the global semiconductor industry. SK Hynix plans to foster the foundry as a next-generation growth engine by strengthening the foundation of the foundry system.

The foundry market is growing sharply as demand for system semiconductors, which are key to implementing smart homes, connected cars, and AI, is increasing. According to market researcher IHS Markit, the foundry market grew by 7.1 % year-on-year to USD 60.96 billion, or 7.8 %, to USD 83.0 billion

SK Hynix Semiconductor Co., Ltd. is expected to mainly produce 90nm process chips according to 200mm diameter wafers at M8 factory in Cheongju, Chungbuk. Especially, the company expects to be able to expand into a variety of system semiconductors such as display driver chips (DDI), power semiconductors (PMIC), application processors (AP) and graphics processing units (GPU).

Park Sung-wook, vice chairman of SK Hynix, and Kim Jun-ho, CEO of SK Hynix Systems IC Co., Ltd., attended the ceremony. President Kim Jun-ho stated, "We will strengthen our process and technology services capabilities and diversify our customers to secure long-term growth potential based on profitability. We will be reborn as a company with the best competitiveness in the 200mm foundry industry."


By Park Seul Gee seul@


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