SK hynix System IC relocation to China is still ongoing

SK hynix System IC, otherwise know as the M8 fab, is a 33,000 square metre big fab located in Cheongju, South Korea. In late 2020, Business Korea reported that SK Hynix System IC had sold all of its production equipment at the M8 plant to a joint venture in Wuxi, China.

The sale and transfer of equipment was a follow-up to an announcement made in July of the same year, where the company disclosed that it would relocate SK Hynix System IC’s M8 plant in Cheongju to China. Since then, various reports on the progress and potential dates for completion have circulated.

Business Korea noted in a more recent report that the transfer of the production capacity would be completed in February, 2022, and that the M8 plant would then sit idle – as the company has not stated publicly what will happen to it.

Evertiq reached out to SK hynix to bring some clarity to the matter. Jaehwan Kevin Kim at SK hynix Global PR Team, explains that the decision to relocate the 8-inch foundry capacity to Wuxi as a part of regular business decision making.

“Also, the target of the relocation is not the whole subsidiary. Our aim is to only transfer the manufactuing capacity to Wuxi. The legal entity will still remain in South Korea as is,” Jaehwan Kevin Kim, says in an emailed statement.

The relocation is according to the information acquired by Evertiq the relocation is still ongoing and the company expects to finalise the move in the first half of this year.

But one question still remains. If the legal entity will still remain in South Korea as is – and the site is available – how will SK hynix use the soon to be idle M8 plant?

“With all due respect, we cannot comment in detail regarding our business plan,”  Jaehwan Kevin Kim says.