SK hynix (000660.KS), the world's second-largest memory chipmaker, is entering the specialty DRAM production business in partnership with domestic small and medium-sized fabless companies. The company plans to expand its win-win management approach to strengthen Korea's semiconductor ecosystem through the specialty business.
According to industry sources on Sunday, SK hynix plans to manufacture specialty DRAM on consignment from a domestic small fabless firm. Having produced only its own designed memory chips, SK hynix is expanding its manufacturing scope to produce products designed by other companies through the specialty DRAM business.
Specialty DRAM refers to products such as low-power DRAM (LPDDR) and multi-chip packages (MCP) used in Internet of Things (IoT) devices, rather than the commodity DRAM that major Korean chipmakers focus on. SK hynix had not pursued this business because demand is smaller and profitability is lower compared to commodity DRAM or high bandwidth memory (HBM). As a result, domestic fabless companies have relied on smaller Taiwanese firms such as Nanya and Powerchip for contract manufacturing.
However, as the recent memory super cycle has made it increasingly difficult for specialty DRAM design companies to secure production lines, SK hynix has entered the business to revitalize the domestic memory ecosystem and promote win-win cooperation, analysts said.
The company's Wuxi plant in China, which primarily operates older DRAM production lines, is mentioned as a potential manufacturing site.
"We are starting this business more from the perspective of win-win management with domestic companies rather than discovering a new revenue source," an SK hynix official said.
