SK hynix announced Thursday it had completed the expansion of a current DRAM production line in Wuxi, China, for technological migration.

The South Korean memory chip provider held a ceremony to mark the completion of the C2F line, attended by around 500 government and industry officials.

The new C2F is a single floor fab with an area of 58,000 square meters. The company has begun production of DRAMs in a part of a sector of the new cleanroom. Full operations of the entire fab will be decided later in accordance with market conditions. 

As the advancement of nanometer processes technology requires more large-size high-tech equipment, SK hynix had decided to invest a total of 950 billion won ($836 million) to expand the cleanroom.

SK hynix has been producing DRAMs at the exiting C2 fabrication line in China since 2006.

As the company’s first 300-mm wafer fab, the Wuxi plant has served as a major growth driver for the Korean chipmaker. The C2 fab accounts for about 40 percent of SK hynix’s total DRAM production capacities.

The company raised 15.8 trillion won last year in the Chinese market, which made up 39 percent of its annual sales by country, the largest share. The latest fab expansion is seen as an indication of SK hynix’s will to maintain growth momentum in the market.

“Completion of the C2F will bring mid- and long-term competitiveness for the Wuxi production base,” said Kang Young-soo, senior vice president at SK hynix. “It will be operated as one fab with the C2, which will maximize efficiency in production and operations.”

By Song Su-hyun (song@heraldcorp.com)