SK hynix MOU with Dalian, China, on Acquisition of Intel Fab for Supporting Chinese IT Industry

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Dalian, China – Seoul, Korea – Jan. 29, 2021 – SK hynix Inc. (or ‘the Company’, today signed a memorandum of understanding (“MOU”) with the Dalian Municipal People’s Government of China and the Administrative Committee of Jinpu New District, Dalian via video link, under which both parties will jointly collaborate on SK hynix’s acquisition of Intel’s Dalian semiconductor fabrication plant (“Dalian Fab”) as well as SK hynix’s future investments in Dalian. The MOU signing ceremony was attended by Jin Guowei, Vice Mayor of the Dalian Municipal People’s Government, and Noh Jongwon, Executive Vice President at SK hynix.

Representatives of SK hynix Inc., the Dalian Municipal People’s Government of China and the Administrative Committee of Jinpu New District, Dalian signing the MOU via video link

People holding MOU from left to right: Noh Jongwon, Executive Vice President at SK hynix; Lv Dongsheng, Deputy Director of the Administrative Committee of Jinpu New District, Dalian ; Jin Guowei, Vice Mayor of the Dalian Municipal People’s Government.

 Speaking at the signing ceremony, Dalian Vice Mayor Mr. Jin Guowei commented, “In recent years, the IT industry in Dalian has witnessed a strong development momentum, becoming one of the city’s fastest-growing and most dynamic pillar industries. As Dalian develops its high-tech industry, we see partnerships with reputed domestic and foreign companies as an important approach to lift the industry’s development to a higher level. This MOU signifies that the partnership between Dalian and SK hynix has entered a new stage of close cooperation. We will strengthen support for SK hynix’s project development in Dalian to ensure its smooth transition, while at the same time, continue to drive technological innovation, cultivate and grow industrial clusters, and enhance the overall scale and core competitiveness of Dalian’s IT industry.”

 Noh Jongwon, Executive Vice President at SK hynix said, “With a deep-rooted foothold in the Chinese market for over 17 years, SK hynix has always pursued co-development and co-prosperity with the China market. We have been continuously expanding our tangible support and commitments in areas like human resources, technology and investment, as we look to help develop and strengthen local IT ecosystem. The signing of this milestone MOU marks the further deepening of the partnership between Dalian and SK hynix, which we hope will advance industrial innovation capacity in Dalian. As a partner, SK hynix will do its best to fulfill its commitments and explore potential collaborations with the Dalian government.”

 Last year, SK hynix announced that it had signed an agreement to acquire Intel‘s NAND memory and storage business for 9 billion USD, which includes Intel’s NAND SSD business, NAND component and wafer business, and the Dalian Fab in the city’s Jinpu New District.

 In accordance with the MOU, SK hynix will continue to invest in the Dalian Fab, while the Dalian government will provide support for SK hynix’s acquisition of the Dalian Fab. In addition, SK hynix will seek to broaden its collaboration scope with the Dalian government to drive sustainable urban development, contribute to regional economic prosperity and help the city develop and grow its IT sector. The MOU will help elevate Dalian’s industrial innovation capacity and support further development of local IT industry.

 Since it established its first fabrication plant in China in 2004, SK hynix has been actively expanding its investment in China. As of 2020, the company had made a cumulative investment of more than 20 billion USD in the country. SK hynix is committed to its DBL (Double Bottom Line) business principle which pursues both economic and social value, and it looks to address wider social issues such as healthcare, education and environment, under the guidance of its CSR strategy. In addition, with its ongoing business expansion in China, SK hynix also prioritizes the recruitment and training of local talent in China, currently employing more than 7,000 Chinese nationals and creating ongoing employment opportunities. The company is committed to bringing more employment opportunities to Dalian and fostering more talent through new project investments in the region.

 SK hynix aims to further expand its deep-rooted local presence, and will actively work with the forces in government, business, academic and society to reinvent a better future for China’s IT industry and contribute to a more prosperous future for the global IT sector.