To Expand Foundry Business
SK Hynix is expected to acquire Key Foundry to strengthen its foundry business.
The Korean chipmaker is expected to acquire the entire stake in Key Foundry held by Magnus PEF, a private equity fund (PEF).
Key Foundry is an 8-inch wafer-based foundry. It was part of LG Semiconductor, which was established in 1979. In 1999, Hyundai Electronics merged with LG Semiconductor and became Hynix Semiconductor. In 2004, Hynix spun off its non-memory business unit during a restructuring process and established Magnachip Semiconductor for sale to overseas CVC Capital. At the time, Magnachip Semiconductor's Cheongju foundry line in North Chungcheong Province was separated to become Key Foundry.
In March 2020, Key Foundry was sold to Alchemist Capital and Gravity PE for 510 billion won. At the time, SK Hynix participated in the PEF as a strategic investor, investing 200 billion won. When the acquisition is completed, SK Hynix will be able to secure its management right.