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SK hynix to sell 50% stake in foundry unit

Written by Wed 8 May 2024

Image Credit: Reuters

South Korean chipmaker, SK hynix, has agreed to sell an almost 50% stake in its Chinese foundry unit to a Chinese state-owned enterprise. 

SK Hynix IC plans to sell a 21.3% stake in its foundry unit in Wuxi to Wuxi Industry Development Group Company for £120.8 million ($150.81 million), as disclosed in a regulatory filing. 

SK Hynix System IC also said it will sell intangible assets, including process technology, to its Wuxi unit for £72.5 million ($90.6 million), according to a separate filing. These sales aim to enhance the company’s business structure and pursue mid-to-long-term growth opportunities, as stated by SK Hynix in both filings.

Korea Economic Daily reported through a new share issuance, Wuxi Industry Development Group Company will also gain a further 28.6%.

“We agreed in July 2018 with the Wuxi Industrial Development Group Company that we will proceed with this move when we establish a joint venture to facilitate the construction of a fab,” said SK Hynix.

Further details of the deal were not disclosed. Established by the Wuxi Municipal People’s Government in April 2008, the Wuxi Industry Development Group has 33 wholly-owned holding enterprises and public institutions, and 30 shareholding enterprises. 

According to its website, these consist of six main businesses of advanced manufacturing, microelectronics, new energy, new materials, environmental protection, and modern services.

SK hynix Bets on Chips

In April, SK hynix, said it will invest £3 billion ($3.86 billion) to build a chip factory for a new random access memory (DRAM) chip production base in Cheongju, North Chungcheong Province, South Korea. SK hynix said it intends to begin construction of the M15X chip factory at the end of April, preparing for mass production in November of next year. 

Earlier that month, SK hynix said it will invest £3 billion ($3.87 billion) to construct an advanced packaging plant and artificial intelligence (AI) product research and development facility. 

The new plant will be situated in Indiana in the US and include an advanced chip production line to mass-produce next-generation high bandwidth memory (HBM) chips. These chips are currently used in graphic processing units that train AI systems. 

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Written by Wed 8 May 2024

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