Hynix and ST-Micro to construct $2-billion DRAM Fab

Hynix Semiconductor, and ST-Microelectronics have combined efforts to construct a $2-billion “front-end” Fab facility in Wuxi City, Jiangsu Province, China. Concentrating on wafer’s for DRAM and NAND Flash, the plant will cover some 18,000 square meter’s of clean room manufacturing space, and employ approximately 1,500. The joint venture will focus on high volume 8-inch wafer production beginning in 2006, and 12-inch wafer production by 2007. Hynix will contribute just over 60% of the facility’s total cost, with ST-Micro incurring the remaining costs. Currently the companies are filing for appropriate government “approvals” and making financial arrangements, as reported by ElectronicNews. Hopefully the little storm cloud hanging over Hynix has lifted, as the last four years have gone far beyond soap-operatic to Greek tragic between Hynix, Micron and their perspective governments. It all began when Micron was to purchase Hynix as the DRAM maker was deep in debt. Apparently the South Korean government stepped in and bailed out the DRAM maker, coincidentally leading to tariffs imposed on Hynix chips as the only US maker of DRAM, Micron then cried foul. This most recent venture is a business savvy move on the part of Hynix, and hopefully will imbibe the SDRAM market with greater quantities of quality IC’s.