Completed SK Hynix M16 plant… Choi Tae-won dreams of a bigger future

SK Hynix started construction of the DRAM factory’M16′ in Icheon, Gyeonggi-do in November 2018. At that time, DRAM prices peaked and then drew a downward curve. There were voices of concern within the SK Group. SK Group Chairman Choi Tae-won pushed for investment, saying, “A bold decision is necessary.”

Chairman Choi’s judgment was right. This year, the DRAM market is showing signs of a super cycle. Just in time, the M16 was completed. As early as July, next-generation DRAM produced by M16 with state-of-the-art equipment will pour out.

“When it’s difficult, bold choices come to fruition”

SK hynix held the M16 completion ceremony on the 1st. The number ’16’ refers to the order of SK Hynix’s production lines. The event was held briefly in the aftermath of the novel coronavirus infection (Corona 19). Only 16 people attended the site, including Chairman Choi and Jaewon Choi, Senior Vice Chairman of SK Group, Daesik Cho, Chairman of SK Supex Pursuit Council, SK Hynix Vice Chairman Park Jung-ho, SK President Dong-Hyun Jang, SK Hynix President Lee Seok-hee, SK Hynix CEO, and SK Hynix Senior Outside Director Ha Young-koo.

It is a common evaluation of SK executives and employees that Chairman Choi’s impressions on this day looked unique. Chairman Choi has faced a’time of choice’ several times, from the acquisition of SK Hynix in 2011 to the announcement of the M14~16 investment plan in 2015 and the decision to start M16 construction in 2018.

Chairman Choi talked about the agony and the meaning of M16 during the completion. He luckily said, “As the semiconductor’upcycle’ is being talked about, the bold decisions made in difficult times allowed us to dream of a bigger future.” “M16 is the completion of the big plan that the company has drawn up so far, and it will remain an important symbol as a starting point leading to the Yongin cluster in the future.” SK Hynix plans to build a 4.16 million ㎡ semiconductor complex (cluster) in Wonsam-myeon, Yongin, Gyeonggi-do.

Mass production of 4th generation 10nm DRAM in the second half of this year

M16 is evaluated as an investment business that focuses on group-level capabilities beyond SK Hynix. Only the investment that has been entered so far is 3.5 trillion won. In the future, the total investment cost is estimated to exceed 20 trillion won because additional EUV (extreme ultraviolet) exposure equipment needs to be imported. The building area (the area of ​​the first floor of the factory) is 57,000m2 (about 17,000 pyeong), which is the level of about eight soccer fields combined.

From July, M16 will mass-produce 4th generation 10 nanometer (nm·1nm = 1 billionth of a meter) DRAM (1a DRAM) using EUV equipment. It is known that 1a DRAM is improved by more than 20% in terms of size, power efficiency, and performance than the current flagship product. If EUV equipment is used to manufacture DRAM, the number of times of engraving circuits can be reduced, thereby increasing production efficiency. There is also a forecast that SK Hynix’s operating profit will surpass 10 trillion won, which is twice the level of last year, with the operation of the M16.

On the other hand, on the same day, Chairman Choi said, “I will release all the things I received from SK Hynix last year (annual salary) for the employees in relation to the complaints of last year’s incentives. Let’s go well,” he said. On the 28th of last month, SK Hynix employees raised their voice, saying, “Disclose the standards for calculating the performance pay” when the incentive pay was set at 400% of the basic pay (20% of the annual salary), which is half the level of competitors. As of 2019, Chairman Choi received an annual salary of 3 billion won from SK Hynix. In the first half of last year, it was 1.75 billion won.

Reporter Hwang Jeong-soo [email protected]

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