SK Hynix doubles foundry capacity with Key Foundry buy
The deal has been under negotiation for the last six months (see SK Hynix opens talks on buying Key Foundry) and is seen as being in-line with SK Hynix’ goals of expanding its non-memory footprint.
SK Hynix already owns a part of Key Foundry as it was part of a consortium that bought the foundry operation out from Magnachip Semiconductor.
Key Foundry operates a 200mm wafer fab that can make power management ICs, display drivers and microcontrollers as a contract manufacturer.
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 on track to be sold to a consortium organized by China’s Wise Road Capital until the United States intervened (see Magnachip in play with last-minute rival bid).
Magnachip remains a public company traded on the New York Stock Exchange.
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 while Key Foundry has a manufacturing capacity of about 80,000 wafers per month.
Related links and articles:
News articles:
SK Hynix opens talks on buying Key Foundry
Magnachip in play with last-minute rival bid
SK Hynix mulls buying MagnaChip fab, foundry business
Foundry chip company formed in Korea
China fund buys Magnachip for $1.4bn
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