SK hynix to raise China legacy chip output capacity

South Korea’s SK Hynix Inc plans to expand its legacy chip production capacity at its chip manufacturing facilities in China, market research firm TrendForce said.

The world’s second-biggest memory chip maker’s long-term strategy involves shifting its capacity expansion back to South Korea, while its China chip production site caters to domestic demand in China and the legacy DRAM memory chip market, the TrendForce report said.

SK Hynix did not immediately respond to a Reuters request for comment on Thursday. TrendForce said its report was based on its “latest research”, without citing sources.

The report said SK Hynix had planned for its China factory to lower the output of legacy chips, but SK Hynix had instead decided to increase production capacity of them due to the U.S. curbs on exports of chip-making equipment to China, requiring licenses for U.S. companies to export advanced chips and chip-making equipment in a bid to slow China’s technological advance.

In March, SK Hynix’s chief executive said it will ask the United States for a year’s further exemption from the curbs.

Last year, SK Hynix said it had received authorisation from the U.S. Commerce Department for a year to supply equipment needed for chip production in facilities in china, without seeking additional licensing requirements. Reuters