News

posted on 24 July 2008 09:08

Hynix Semiconductor is to close its DRAM fab plant in Eugene, Oregon. DRAM manufacture is moving to larger capacity wafers and the 200mm Eugene plant wafers no longer cut it in an over-supplied DRAM market.

Hynix, the number two DRAM supplier after Samsung,  has to lower its manufacturing costs because of DRAM pricing falls, and more productive 300mm wafers are the chosen route. It has decided that the Eugene plant cannot be developed for the new processes cost-effectively. So it has to go and go it will by the end of September.

It is considering various options for the use of the plant after it has closed including selling all or part of it to another semiconductor manufacturer. The equipment in the plant will be relocated by Hynix. The 8-year old plant employed around 1,100 workers making Hynix one of Eugene's largest employers and tax payers.

Other Hynix plants making 200mm wafers are also being looked at. These include plants in Icheon, where Hynix is headquartered, and Cheongju, Korea. Some are planned to produce either consumer DRAM and System IC (integrated circuit) products or to provide foundry services. Hynix will seriously consider selling the equipment in the others. What that means for the plants is not clear but closure must be a possibility.

Most 200mm wafer DRAM fabs now have closure possibilities ahead as the transition to 300mm fabs is taking place faster than originally expected. Many DRAM manufacturers have been losing money for the past two years. The DRAM future is fewer fabs making larger wafers, generally in the far East.

As a side issue the closure could affect a Rambus suit against Hynix for memory patent infringement since Hynix would no longer be shipping DRAM chips from the plant in the USA.

^{[Martin Edwards, news writer.]}