Report: SK Hynix looking to acquire Key Foundry

19 May 2021

SK Hynix is considering acquiring Key Foundry, a Korean manufacturing firm it already has a 49.8% stake in.

According to the Korea Herald, Key Foundry was separated from Magnachip last year with the remaining stake held by another investor, MG Community Credit Cooperatives. Last year, SK Hynix spent $183 million for the 49.8% stake.

The report indicated SK Hynix may invest about $354.8 million to take over the remaining shares of Key Foundry. SK Hynix is considering the ongoing chip shortage happening in the 8 in foundry facilities.

The move comes after the chairman of SK Hynix said it was looking to double its foundry capacity including domestic facility expansion as well as potential acquisitions.

If completed, the acquisition of Key Foundry would boost SK Hynix’s monthly capacity of up to 200,000 wafers.

Key Foundry, an 8 in foundry, was part of LG Semiconductor before becoming part of Hynix Semiconductor through the merger between LG and Hyundai Electronics. The non-memory business of Hynix Semiconductor was spun off into Magnachip and Key Foundry was established by separating Magnachip’s foundry facilities in Cheonju, North Chungcheong Province.

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