SK hynix launches foundry affiliate

All Headlines 10:55 July 10, 2017

SEOUL, July 10 (Yonhap) -- Major chipmaker SK hynix Inc. said Monday it officially launched a new affiliate, which will focus on the company's foundry business and tap deeper into the system chip industry.

SK hynix System IC Inc., wholly owned by SK hynix, will focus on the foundry business, which refers to making chip designs for other companies that do not have a semiconductor fabrication plant.

The South Korea's No. 2 chipmaker announced in May that it will spin off its foundry business in order to beef up its competitiveness in this sector.

SK hynix System IC said it plans to focus efforts on developing its 200 millimeter-production technologies to grab a wider scope of buyers.

Industry watchers said the spin-off is expected to help SK hynix tap deeper into the system chip sector, which is set to play key roles in emerging industries, including artificial intelligence and Internet of Things.