Specializing in 8-inch wafer foundry fabrication services for analog and mixed-signal ICs, SK Hynix System IC has disclosed net profits climbed 42.7% on year to KRW76.1 billion (US$65.8 million) in the first half of 2021, despite a 0.5% dip in revenue during the same period.
Founded in 2017 as a wholly-owned subsidiary of SK Hynix, SK Hynix System IC provides 8-inch foundry services for CMOS image sensors, display driver ICs, power management chips and microcontrollers. Headquartered in Cheongju, SK Hynix System IC also has a fab in Wuxi, China.
With the opening of its Wuxi fab in late 2020, SK Hynix System IC has put increased focus on demand from China's IC design sector, according to market observers. Robust demand from the China market and bullish 8-inch foundry ASPs will be driving SK Hynix System IC's profit growth this year, the observers said.
SK Hynix System IC is forecast to see its operating profits top KRW150 billion in 2021, up from KRW94.1 billion last year, the observers indicated. Its profit growth prospects for 2022 are also bright, as the overall 8-inch foundry supply will remain tight next year, the observers said.
In addition, SK Hynix reportedly is looking to acquire Key Foundry, which will be consolidated into its 8-inch foundry business. Also operating in Cheongju, Key Foundry was formerly the foundry business of MagnaChip Semiconductor.
SK Hynix disclosed previously the company is considering feasible plans to double its foundry capacity. SK Hynix will look into several strategic options, such as additional equipment and facility purchases and M&A, for its foundry capacity expansion, company co-CEO and vice chairman Park Jung-ho was quoted as saying in previous reports.