SK Hynix is already a minority investor in Key Foundry, having infused about $181.93 million into a private equity fund
The world’s second-largest memory chip manufacturer SK Hynix Inc is initiating talks to acquire South Korean chip contract manufacturer, Key Foundry, a recent report stated.
Citing sources in the industry, South Korean newspaper Korea Economic Daily reported that SK Hynix has expressed intention to negotiate for the full acquisition of the 8-inch wafer foundry.
SK Hynix, which is also the world’s third largest semiconductor company, said that it is considering various measures to expand its foundry business, but nothing has been finalised.
SK Hynix is already a minority investor in Key Foundry, having infused about $181.93 million into a private equity fund last year that owns the chip contract manufacturing firm. It is now interested in buying out the rest, Korea Economic Daily said.
Key Foundry has a chip manufacturing capacity of 82,000 8-inch wafers per month, and is the only pure-play foundry in Korea, with the ability to make chips for applications in the consumer, communications, computing, automotive and industrial industries, according to its website.
SK Hynix has also reportedly been considering doubling its chip contract manufacturing capacity. Logic chips including chip contract manufacturing currently make up only 2 per cent of the company’s revenue, which is otherwise almost completely made of memory chips.
