SK Hynix ready to churn out next-gen chips on EUV-based fab

[Photo provided by SK Hynix Inc.]

South Korea’s SK Hynix Inc. has joined the exclusive front-leading group in chipmaking after it finished the construction of its biggest-yet fab based on the extreme ultraviolet (EUV) lithography technology that dramatically minimizes the nano-node process to churn out high-performance chips at greater yield.

SK Hynix on Monday held a completion ceremony of its M16 chip production line in its Icheon complex, Gyeonggi Province, after 25 months of construction launched in November 2018 at a budget of 3.5 trillion won ($3.1 billion). Total spending is expected to reach 20 trillion won when the facilities inside are included.

The new fab is the largest among SK Hynix’s production sites at home and abroad, boasting a floor area of 57,000 square meters. The M16 plant is 336 meters long, 163 meters wide, and105 meters high.

SK Hynix plans to produce DRAM chips at M16 on EUV equipment that costs over 150 billion won per unit. The company will produce fourth-generation 10-nanometer DRAM products from July after pilot test.

EUV processing allows production of chips with finer circuit patterns and increased performance and productivity. It is currently used by Samsung Electronics and TSMC for 5-nanometer process.

[Photo provided by SK Hynix Inc.]

“We worried when we decided to build M16 two years ago when the overall semiconductor memory hit a downturn back then,” said SK Group Chairman Chey Tae-won at the ceremony. Among others present were SK Group Senior Vice Chairman Chey Jae-won, SK SUPEX Council Chairman Cho Dae-sik, and SK Hynix Vice Chairman Park Jung-ho.

“But the opening comes timely as the market has entered a rebound,” Chey said.

During the ceremony, Chey vowed to return his entire salary from SK Hynix in 2020 and share with the employees after reports that workers were dissatisfied with the small scale of incentive payment. Chey received 3 billion won from SK Hynix in 2019, including 2 billion won in salary and 1 billion won in bonus.

Shares of SK Hynix finished 4 percent higher at 130,000 won on Tuesday.

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