Successfully passed the anti-monopoly review in China and South Korea, SK hynix officially acquired Key Foundry for KRW 575.8 billion
SK Hynix, the world's second-largest memory chip maker, said in October 2021 that it would acquire South Korean foundry Key Foundry. Yesterday, SK Hynix officially completed the acquisition.
According to The Korea Herald, SK hynix announced yesterday that it has passed the antitrust review in China and South Korea, successfully completed the acquisition of Key Foundry at a price of 575.8 billion won, and obtained from private equity firms Alchemist Capital Partners and Gravity Private Equity. the entire equity of the company.
A company that produces power management IC chips, display driver IC chips and microcontroller units, Key Foundry managed to turn around a loss in 2020 with an operating profit of 51 billion won in 2021. In addition, Key Foundry's revenue in 2021 reached 616 billion won, a nearly four-fold increase in 2021 compared to 2020's revenue.
Currently, SK hynix is 200mm foundry by subsidiary System IC, which was spun off from SK hynix in 2017. SK Hynix said that Lee Dong-jae, CEO of System IC, will lead Key Foundry.
It is worth mentioning that SK Hynix completed the acquisition of the first phase of Intel's solid-state drive business and NAND flash memory related assets in Dalian, China in December last year, and plans to acquire Intel's remaining NAND flash memory assets as early as 2025. In addition, SK Hynix Chairman Chey Tae-won announced in July that it would invest $15 billion in semiconductor development in the United States.
SK Hynix expects the acquisition to double its current 8-inch foundry capacity. During the anti-monopoly review, the Korean review agency stated in March this year that the combined market share of SK Hynix's foundry division and Key Foundry was only about 5%, which would not lead to the risk of hindering competition.
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