South Korea’s SK hynix Inc. has completed its acquisition of Key Foundry to enhance its foundry business nine months after signing a deal to take over a full stake in the domestic foundry firm from Magnachip Semiconductor for 575.8 billion won ($439.6 million).

The chipmaker was given a nod for its acquisition by local and Chinese antitrust agencies in the first half. SK hynix’s 8-inch foundry unit SK hynix system ic CEO Lee Dong-jae is likely to head Key Foundry.

Key Foundry operates an 8-inch wafer fab and provides foundry service for 90-nanometer or higher growth products to global fables companies. Last year, it delivered 616 billion won in revenue.

With the acquisition of Key Foundry, 8-inch wafer production output can be doubled from current level. SK hynix system ic is capable of producing 80,000-100,000 units of 8-inch wafers per month, and Key Foundry about 85,000 units.

Separately, SK hynix is reviewing acquisition of British fabless semiconductor and software designer Arm under Japan’s Softbank in a consortium with strategic investors to diversify its business portfolio heavily reliant on DRAM.

Revenue from memory chip sales takes up nearly 95 percent of the company’s total revenue.

The world’s largest memory giant Samsung Electronics Co. has also been eagerly expanding foundry for sustainability in revenue versus volatile mass-market memory.

SK hynix shares were trading 0.21 percent higher at 96,700 won in Seoul trading at 11:22 a.m. Wednesday.

By Jung You-jung and Lee Ha-yeon

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