Korean silicon foundry DB HiTek Co. will focus its development capabilities on next-generation system semiconductors for connected devices to stay competitive in the fourth industrial age, said its chief executive at the annual shareholders meeting on Monday.

The company’s business efforts will primarily focus on commercializing the new, high-value-added products such as microelectromechanical systems (MEMS) sensors and OLED driver chips, said Choi Chang-sik, DB HiTek chief executive officer.

He projected the 8-inch wafer foundry market is expected to extend robust growth momentum this year unlike memory chip market as the demand for system semiconductors remain strong, especially from the Internet of Things and connected car makers.

DB HiTek, which makes integrated circuits used in various devices such as computers and mobile phones, has seen its operating margin hover above 20 percent in recent years, according to Choi. Last year, the company earned an operating profit of 113.0 billion won ($99.6 million) on sales of 669.3 billion won on a consolidated basis.

On the same day, DB HiTek shareholders approved all of the company’s management proposals including board appointment at the annual meeting. Yang Seung-ju, DB HiTek chief financial officer was appointed as an inside director. Kookmin University professor Lee Chan-woo and executive vice chairman of the Korea Chamber of Commerce and Industry Kim Jun-dong were appointed as new outside directors and audit committee members.

By Yong Hwan-jin and Cho Jeehyun

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