SK Hynix System IC to Accept Volunteers for 'Unpaid Leave' Amid Industry Downturn Impact

Measures Allowing Rest Periods from 2 Weeks up to 3 Months

SK Hynix subsidiary SK Hynix System IC has decided to accept applications for unpaid leave from all employees. This is due to the downturn in the 8-inch (200mm) foundry (semiconductor contract manufacturing) industry.

According to industry sources on the 12th, SK Hynix System IC recently announced to employees at its Cheongju plant in Korea and Wuxi plant in China that it will accept unpaid leave requests until December this year. Employees wishing to take leave can do so for a minimum of 14 days (2 weeks) up to a maximum of 3 months.

This measure appears to be due to the slump in the 8-inch foundry industry. The 8-inch foundry sector has seen its operating rate drop to about half due to weak demand for IT devices and a downturn in the semiconductor market. The parent company, SK Hynix, is also facing unavoidable losses for four consecutive quarters from Q4 last year through Q3 this year.

The number of employees at SK Hynix System IC is approximately 2,000. Given the reduced factory operating rate, there is a high possibility of reducing the workforce.

The company explained, "We have changed the system so that employees can apply for unpaid leave without special reasons, whereas previously it was only possible with specific reasons."

This content was produced with the assistance of AI translation services.