Facility

SK Hynix Wuxi Fab — DRAM (Export Control Risk)

SK Hynix's Wuxi, China fab — produces approximately 40% of SK Hynix's total DRAM output (primarily older-generation 1y/1z-nm DDR4 and LPDDR4X) and is the company's largest single production site by wafer volume. The Wuxi fab faces significant US export control risk: the US Commerce Department's October 2022 rules (Entity List restrictions) created uncertainty about whether SK Hynix could continue equipment upgrades and expansions at Wuxi. SK Hynix received a temporary waiver for Wuxi in October 2022 (renewable annually) allowing equipment imports to continue, but the waiver creates permanent strategic uncertainty. Any non-renewal of the Wuxi waiver would freeze production at current technology generations, preventing SK Hynix from upgrading Wuxi to advanced nodes — effectively stranding 40% of SK Hynix's production capacity at an aging node. SK Hynix has signaled intent to gradually migrate leading-edge production out of Wuxi to South Korea as wafer equipment lifetimes expire. Source: https://www.reuters.com/technology/south-korean-chipmakers-get-us-waiver-semiconductor-equipment-china-2022-10-09/