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SK Hynix will end chip shortage: seeks to double its production

It was Park Jung-ho, co-executive director and vice president of SK Hynix who has declared during an official event of the government of his country that SK Hynix is ​​considering a feasible plan that could lead them to double their manufacturing capacity. Park said the company is looking at several strategic avenues, such as team expansion at home sites, mergers and acquisitions.

SK Hynix’s plan to end the chip shortage

According to the company executive, SK Hynix will invest in the 8-inch casting business to support the development, mass production and expansion of the global market, which is especially important for companies that do not have their own factories. In addition, the company expects to expand its product portfolio and provide global customers of various applications (including PC, mobile devices, home appliances and automotive) with more options within its semiconductor portfolio.

Park’s declaration demonstrates SK Hynix’s firm will to stabilize the global supply of semiconductors amid the current shortage, and also to support companies that do not have their own factories and whose performance depends entirely on third parties. , with the aim of strengthening the Korean semiconductor ecosystem.

The semiconductor industry also hopes that Park, who was recently appointed co-CEO of the company, will soon announce a more specific investment plan involving mergers and acquisitions, as he was precisely one of the main figures responsible for the acquisition of SK Hynix by SK Telecom. Park is indeed a recognized M&A expert at SK Group, and was also involved in SK Hynix’s major investments such as its investment in Kioxia Corporation (formerly Toshiba) and the acquisition of Intel’s NAND and SSD business.

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To explain all this in a clearer way, it seems that SK Hynix intends to double its production capacity at the stroke of the checkbook, that is, by buying third companies and generating mergers among others so that the root company (SK Hynix in this case) literally acquire new factories in which to increase its production of chips.

Many of the big contenders in the semiconductor industry are basing their plans to increase production simply on expanding their factories or building new ones, something that can take a long time to accomplish; For its part, SK Hynix has been the first to openly state that it is planning to buy other companies in order to increase its chip production capacity. This, however, has a problem, and that is that SK Hynix would increase its production capacity but would achieve it by taking it away from other companies, so the global manufacturing capacity would not change.