In order to improve its financial stability and focus on profitability, Icheon, Korea-based DRAM giant Hynix Semiconductor Inc said today that is it retiring its 200-mm wafer fabs earlier than planned, also because they are less efficient than 300-mm fabs.

Hynix has five 200-mm fabs: M7 in Icheon; M8 and M9 in Cheongju; E1 in Eugene, Oregon; and HC1 in Wuxi, China.

As the company said previously, to speed the retirement of the 200-mm fabs Hynix has stopped operations at HC1, E1 and M9 FABs. As well, M7, which has exclusively produced DRAM, will be closed by the end of this month.

In regard to M8, the remaining 200-mm fab following retirement of other fabs, will be ramped down to produce smaller volumes than its original production plan of 130,000 wafers per month, and will focus on specialty products.

As such, total production output from 200-mm fabs at the beginning of 2009 will be reduced to less than 10% of total capacity compared to 50% at the end of year 2007.

Overall, with the 200-mm fab closures, total production capacity will decrease 30% by the beginning of 2009 from the end of Q2 2008, which includes reducing DRAM outputs by 20% and NAND flash outputs by 40%, Hynix noted.

Further, due to the 200-mm fab closures, Hynix said it will convert most of its DRAM and NAND flash production from 200-mm fabs to 300-mm fabs, and expects to continue strengthening its position as a leading player in the industry through technology advancement and cost competitiveness while improving cash flow and profitability.

By: DocMemory
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