SK Hynix to spend US$38 bil­lion over 10 years on plant in­vest­ments

The China Post - - WORLD BUSINESS -

South Korea’s SK Hynix Inc., the world’s sec­ond-largest mem­ory chip maker, an­nounced Tues­day it would spend 46 tril­lion won (US$38 bil­lion) in fa­cil­ity in­vest­ments over the next 10 years.

The plan was un­veiled by SK Group Chair­man Chey Tae-Won — newly re­leased from prison by a pres­i­den­tial par­don — at a ded­i­ca­tion cer­e­mony for a new chip plant in Icheon, 80 kilo­me­ters (50 miles) south­east of Seoul.

The new plant will even­tu­ally at­tract a to­tal of 15 tril­lion won in­vest­ment, with the re­main­ing 31 tril­lion won go­ing on build­ing two more chip plants — one in Icheon and the other in Cheongju city.

SK Hynix re­ported a 65 per­cent on-year in­crease in sec­ond quar­ter net profit, miss­ing an­a­lyst es­ti­mates, as slow­ing de­mand for per­sonal com­put­ers and smart­phones damp­ened mem­ory chip prices.

Chey, 54, re­ceived his par­don on Aug. 13 af­ter serv­ing 31 months of a 48-month prison sen­tence for em­bez­zling 46.5 bil­lion won from two SK Group af­fil­i­ates.

Pres­i­dent Park Geun-hye said her de­ci­sion to free Chey had been mo­ti­vated by a need to “re­vi­tal­ize the econ­omy.”

On his re­lease from prison, Chey had promised to work for the “eco­nomic and so­cial de­vel­op­ment of our na­tion.”

AP

South Korean Pres­i­dent Park Geun-hye speaks dur­ing a cer­e­mony to celebrate the com­ple­tion of SK Hynix Inc., the coun­try’s chip gi­ant, in Icheon, South Korea, Tues­day, Aug. 25.

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