SK Hynix opens talks on buying Key Foundry
SK Hynix is expected to pay 400 billion won (aboutUS$350 million) to acquire the portion of Key Foundry it does not already own. And the move is seen as being in-line with company goals of expanding its non-memory footprint.
However, the decision came sooner than expected likely stimulated by the shortage of 200mm foundry capacity that could have driven up the value of Key Foundry and made SK Hynix’s acquisition more expensive.
Key Foundry was formed by the buy-out of Magnachip Semiconductor’s Cheongju-based foundry facility for 510 billion won (about US$450 million) in 2020 (see Foundry chip company formed in Korea). The buyer was a consortium formed by Alchemist Capital Partners Korea Co. Ltd. and Credian Partners Inc. and it was thought at the time that SK Hynix had a significant share in the company.
SK Hynix contributed 207.3 billion won (about US$180 million) to the deal, the Korea Economic Daily reported. The balance of Magnachip, a maker of analog, mixed-signal and power chips, was subsequently sold to a consortium organized by China’s Wise Road Capital.
SK Hynix has an existing 200mm foundry business – SK Hynix System IC – which it recently relocated from Cheongju in Korea to Wuxi in China. That foundry has a capacity of 100,000 wafers per month, KED said Key Foundry has a manufacturing capacity of about 80,000 wafers per month.
Related links and articles:
News articles:
SK Hynix mulls buying MagnaChip fab, foundry business
Foundry chip company formed in Korea
China fund buys Magnachip for $1.4bn
If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :
