SK Hynix pushing to acquire Key Foundry to double foundry capacity

SK Hynix is reportedly very interested in buying Key Foundry, a Korean chip contract manufacturer. The second-largest chipmaker in the world would like to expand its foundry capacity and this is the main reason for its intent to acquire the said company.

SK Hynix seeking an audience with Key Foundry

As per the Korea Economic Daily, SK Hynix expressed its wish to have a talk with Key Foundry so they can negotiate for a full acquisition of its 8-inch wafer foundry. This detail reportedly came from sources in the tech and investment banking sector.

At this point, it was said that SK Hynix is considering different measures to boost its foundry business. However, nothing has been finalized yet so there could be other moves from the South Korean memory semiconductor manufacturer.

It was learned that the company already invested in Key Foundry last year by putting in around ₩207 billion or $181.93 million into a private equity fund (PEF) that owns the chip contract maker headquartered in Cheongju, South Korea. Now, it wants to purchase the rest of the shares.

Reuters mentioned that Key Foundry could make 82,000 8-inch wafers per month and it is the only pure-play foundry in the country. It has the capacity to produce semiconductor chips for different applications in various fields such as computing, communications, automotive, consumer and industrial industries.

SK Hynix’s plan after the full acquisition

In case the two companies reach an agreement and SK Hynix fully acquires Key Foundry, the former will begin its work to double its foundry capacity. The purchase is also intended to provide support for the development, mass production and global market expansion as per HPCWire.

SK Hynix is looking to expand its portfolio and supply semiconductors to global customers that are involved in auto, electronics or mobile businesses. This will also help the company in its goal to do its part in solving the chip shortage worldwide.

Finally, Park Jung Ho, SK Hynix’s recently appointed co-CEO and vice chairman, is also expected to announce specific plans for its investments including in the M&A ventures. More deals and acquisitions are also said to be part of the strategy for expanding the company.