SK Hynix eyeing part of MagnaChip Semiconductor - source

FILE PHOTO: The logo of SK Hynix is seen at its headquarters in Seongnam, South Korea, April 25, 2016. REUTERS/Kim Hong-Ji/File Photo

SEOUL (Reuters) - South Korea’s SK Hynix Inc is looking at buying part of logic chip maker MagnaChip Semiconductor Corp, a source familiar with the matter told Reuters on Monday, adding nothing had been decided.

SK Hynix, the world’s second-biggest memory chipmaker, and its bigger rival Samsung Electronics, have been beefing up development of logic chips such as mobile processors, image sensors and automotive chips, betting on their growth with memory chip demand slowing.

South Korea’s Maeil Business Newspaper said on Monday that SK Hynix was considering bidding for Magnachip’s foundry business and its factory in South Korean city of Cheongju, citing chip industry sources.

SK Hynix and MagnaChip declined to comment.

In February, MagnaChip said it “has undertaken a strategic evaluation of the Company’s Foundry business and Fab 4,” with options including “joint ventures, strategic partnerships as well as M&A possibilities.”

MagnaChip said it has retained financial and legal advisors to assist in the evaluation.

Local media previously reported the businesses up for sale would be worth $300 million.

The former non-memory unit of Hynix Semiconductor was bought by a consortium of Citigroup Venture Capital (CVC) in the United States, CVC Asia Pacific and another investment fund for $830 million in 2004.

The South Korean company is owned by a number of investors including Brigade Capital Management, Oaktree Capital Management and Evermore Global Advisors, Refinitiv data shows.

Reporting by Hyunjoo Jin and Ju-min Park; editing by David Evans