SK Hynix is resolving the global semiconductor shortage and contributing to the growth of the domestic fabless ecosystem through the acquisition of Key Foundry, an 8-inch foundry company.

SK Hynix announced on the 29th that it would acquire Key Foundry and signed a contract to acquire 100% of Key Foundry's shares from Magnus Semiconductor Co., Ltd. for KRW 575.8 billion.

SK Hynix emphasized, “We expect the acquisition of Key Foundry to contribute to doubling SK Hynix’s foundry production capacity,” and “In the future, we will strengthen our 8-inch foundry capacity to enhance our system semiconductor competitiveness, and we will also work to stabilize the global semiconductor supply chain and support the domestic fabless ecosystem.”

Keyfoundry, headquartered in Cheongju, has a semiconductor production facility based on 8-inch wafers suitable for small-volume production of a variety of products. The company is engaged in contract manufacturing of non-memory semiconductors such as power semiconductors (PMICs), display driver ICs (DDIs), and microcontroller units (MCUs).

Currently, SK Hynix owns an 8-inch foundry subsidiary, SK Hynix System IC. System IC’s wafer processing capacity is similar to that of Key Foundry, which signed the acquisition agreement this time, and SK Hynix expects its foundry production capacity to double.

Meanwhile, SK Hynix reviewed several options to expand its foundry production capacity and decided to acquire Key Foundry. Vice Chairman Park Jeong-ho announced at the ‘K-Semiconductor Strategy Report Conference’ last May that “we will double the 8-inch foundry production capacity.”

Going forward, SK Hynix plans to complete the acquisition of Key Foundry after obtaining regulatory approval from major countries.