Skip to main content

Market Overview

SK Hynix In Talks To Acquire Korea's 8-Inch Chip Maker Key Foundry

Share:
SK Hynix In Talks To Acquire Korea's 8-Inch Chip Maker Key Foundry
  • Memory chipmaker SK Hynix Inc (OTC: HXSCL) is in talks to acquire South Korean chip contract manufacturer Key Foundry, which specializes in 8-inch wafers following its foundry business shift to China and growing 8-inch foundry facilities’ crisis, Reuters reports based on Korea Economic Daily.
  • Key Foundry was established in September 2020 after MagnaChip Semiconductor Corp (NYSE: MX) sold its Cheongju-based foundry facility for $450 million (510 billion won) to private equity firms Alchemist Partners and Gravity Private Equity led consortium in March 2020.
  • SK Hynix has acquired a minority stake in Key Foundry for $181.93 million (207 billion won) via the PE fund.
  • SK Hynix could inject over an additional 400 billion won to take over the MagnaChip spin-off.
  • Presently, SK Hynix operates its foundry business via subsidiary SK Hynix System IC, which recently moved its 8-inch wafer facilities from the Cheongju plant in Korea to Wuxi, China. The foundry produces around 100,000 wafers per month.
  • Key Foundry has a monthly production capacity of 82,000 wafers.
  • Interestingly, Key Foundry shares some resources like industrial water and power with SK Hynix’s Cheongju-based factory.
  • Last week, SK Hynix had disclosed its plans of doubling its chip contract manufacturing capacity that could include M&A.
 

Related Articles (HXSCL)

View Comments and Join the Discussion!

Posted-In: Briefs semiconductorsM&A News Small Cap Tech Media

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com