SK Keyfoundry has announced its decision to acquire a 98.59% stake in SK Powertech from SK Inc. for 25 billion won. This acquisition, set to be completed in the first half of this year pending regulatory approvals, marks a significant step for SK Keyfoundry in its quest to become a leader in the next-generation compound semiconductor business.
SK Keyfoundry, an 8-inch foundry which had been spun off from Magnachip Semiconductor in September 2020, became a subsidiary of SK Hynix in August 2022.
SK Powertech, formerly known as Yes Power Technics, was acquired by SK Inc. in 2022 and is renowned for its expertise in designing and manufacturing silicon carbide (SiC)-based power semiconductors. These semiconductors are increasingly recognized for their durability and efficiency, particularly in high-power and high-temperature applications, making them ideal for use in electric vehicles and renewable energy systems. According to global market research firm Omdia, the SiC semiconductor market is projected to grow at an impressive average annual rate of 31%, reaching $23 billion by 2030.
The acquisition comes at a time when the 8-inch foundry market is experiencing improved utilization rates, presenting an opportune moment for SK Keyfoundry to enhance its competitiveness. By integrating SK Powertech’s SiC technology with its own semiconductor mass production capabilities, SK Keyfoundry aims to create significant synergies. “This stake acquisition aims to strengthen our competitiveness in the next-generation compound semiconductor business,” stated SK Keyfoundry. “We believe that SK Keyfoundry, with its semiconductor mass production know-how, can create synergy with SK Powertech, which possesses SiC-based power semiconductor technology.”
Power semiconductors are crucial for managing and converting electrical energy in a variety of applications, including electric vehicles, industrial machinery, and communication networks. As a core pillar of SK Keyfoundry’s growth strategy, the acquisition of SK Powertech is expected to accelerate the development of SiC power semiconductor capabilities, ultimately transforming SK Keyfoundry into a “power semiconductor specialized foundry.”
