According to Reuters, memory chip maker SK Hynix said on Friday last week that it would acquire South Korea-based chip foundry manufacturer Key Foundry for 576 billion won (approximately US$492 million).

Key Foundry was originally a subsidiary of LG Semiconductor established in 1979. In 1999, after LG Semiconductor merged with Hyundai Electronics to form Hynix Semiconductor, Key Foundry became a Hynix Semiconductor company. In October 2004, after the spin-off of Hynix's non-storage business, it became Magnachip independently, specializing in the design and manufacture of analog and mixed-signal semiconductor products. In 2020, Magnachip sold its foundry division to a consortium formed by Alchemist Capital Partners Korea Co., Ltd. and Credian Partners, Inc. and became Key Foundry.

Key Foundry specializes in foundry business in its 8-inch wafer fab in Cheongju, Chungcheongbuk-do, South Korea, with a monthly production capacity of approximately 82,000 wafers. It mainly manufactures semiconductor chips such as power management, display drivers and microcontrollers, and focuses on consumer electronics, communications, computers, automotive and industrial markets.

he report pointed out that since the first half of this year, SK Hynix has been negotiating the acquisition of Key Foundry. SK Hynix expects that the acquisition will double its current foundry production capacity.