SK Hynix to acquire S.Korea-based chip contract manufacturer for $492 million

FILE PHOTO: Employees of SK Hynix walk at the company's main office building in Seoul October 24, 2012. South Korea's SK Hynix Inc booked a smaller-than-expected quarterly operating loss on a jump in demand for chips used in mobile devices like Apple Inc's iPad and iPhone, sending its shares up 4 percent. REUTERS/Kim Hong-Ji

SEOUL (Reuters) -SK Hynix Inc, the world’s second-largest memory chip maker, said on Friday it will acquire South Korea-based Key Foundry, a chip contract manufacturer, for 576 billion won ($492.41 million).

The 8-inch wafer foundry manufactures chips such as power management, display driver and microcontroller unit semiconductors, SK Hynix said in a statement.

SK Hynix had been in talks to acquire Key Foundry, in which it had a minority stake earlier, since the first half of this year, South Korean media previously reported.

SK Hynix said the acquisition is expected to double its current 8-inch foundry capacity. It already has a chip contract manufacturing unit, SK Hynix System IC.

($1 = 1,169.3500 won)

Reporting by Joyce Lee and Heekyong Yang; Editing by Himani Sarkar