By Kim Yoo-chul
SK hynix Chief Executive Officer (CEO) Park Sung-wook said that the world’s No. 2 memory chip supplier doesn’t have plans to purchase Korea’s Dongbu HiTek, which is currently up for sale.
“For the time being, SK hynix isn’t mulling that possibility,” the CEO told reporters at this year’s business meeting with semiconductor firms organized by the Korea Semiconductor Industry Association (KSIA) at the COEX InterContinental Hotel, southern Seoul, Friday.
To ease worries over a liquidity shortage, Dongbu is pushing to sell 37.16 percent of its stake in its semiconductor affiliate Dongbu HiTek, whose other shareholders are Dongbu CNI and Dongbu Construction. The controlling stake is currently valued at some 120 billion won. The sales value of the firm is estimated at 170 billion won, including the managerial rights premium.
But the top executive remained calm despite repeated questions from reporters about whether SK hynix might change its stance.
Park’s comments came as the race for the takeover of HiTek is heating up.
LG Electronics, TowerJazz Semiconductor of Israel and GlobalFoundries of the United States are regarded as the top three contenders.
HiTek develops analog and mixed-signal processing technologies. It sells chips on a contractual basis, while the firm also produces system-level chips at the 90-nano node level.
Solutions by HiTek are used in various electronic applications including TVs, PCs and mobile phones, as well as automobiles, said Dongbu officials.
While SK hynix is gradually increasing its investment in system-oriented chips, not just “pure” memory chips, officials at SK contacted by The Korea Times said SK Group Chairman Chey Tae-won’s actions are troubling.
“Sometimes, big decisions are coming with no business reasoning,” said an SK official by telephone.
“Amid a new order in the global memory chip industry, SK is one of the few survivors in the industry. Its financial soundness is clearly looking good as SK hynix is the most-trusted supplier in pure memory chips to be used in almost all devices. But it needs to think about what’s next. “