SK Hynix System IC and NXP keep raising their production capacity in China

Editing by Kate Yuan

SK Hynix System IC and Netherlands-based NXP Semiconductors have both ramped up their production sites in China, JW Insights noticed.

SK Hynixisin progress to relocate its 8-inch foundry subsidiary, SK Hynix System IC, to Wuxi, eastern China's Jiangsu Province. The plan is expected to be completed in the first half of this year, according to a Business Korea report.

SK Hynix System IC is an M8 fab covering 33,000 square meters in Cheongju, South Korea. The company reportedly had sold all its production equipment of this fab to a joint venture in Wuxi, and the production capacity transfer would be completed in February this year.

NXP Semiconductors (Tianjin) has just finished the second floor of its IC test center in northern China’s Tianjin City. Its first floor was put into production in August 2021, according to TEDA (Tianjin Economic Development Area), which is the location for the NXP’s test center.

Source: TEDA

This project is invested and constructed by NXP Semiconductors (Tianjin) Co., Ltd., and designed and built by China’s largest design institute for IC projects EDRI, covering 14,900 square meters.

In 2021, NXP’s operating income reached $11.063 billion, up by 28.46% year on year, and the operating profit was $2.583 billion, surging by 517.94%.

NXP said its revenue in 2021 increased by 28.5% year on year, primarily due to the recovering growth in the company's four end markets, with highly remarkable performance in automotive, industry, and IoT.