Company - - Feb 07,2017
According to an unnamed source, the South Korean company SK Hynix Inc. has entered the running for a stake in Toshiba Corporation’s memory chip business.
The manufacturer of DRAM, SRAM, FLASH and other semiconductor devices, SK Hynix Inc., is seeing an opportunity to gain on competitors in the booming NAND market.
According to South Korea’s local media reports, SK Hynix Inc. has offered to invest $2.6 billion (3 Trillion Won) in the chip making operations set to be spun off from the Japanese manufacturer Toshiba Corp.
According to the source, requesting anonymity as they were not certified to communicate publicly on the arrangement, the world’s No. 2 memory chip manufacturer had submitted a primary offer, although the size of the stake it wanted to acquire had not been decided. The Japanese company is the world’s second-largest manufacturer of NAND flash memory chips used for long-term data storage.
A spokesperson from SK Hynix Inc. declined to comment and Toshiba Corp. stated that it could not comment on specifics on the bidding procedure.
These two companies are competitors in the NAND market, but they collaborate in the growth of advanced memory products.
Market analyst thought that SK Hynix Inc. wants to strengthen its connections with Toshiba Corp. in an effort to catch its domestic competitor, the top-placed Samsung Electronics Co Ltd.
Last year, SK Hynix informed record quarterly profits in October-December and is now South Korea's second-largest corporation by market capitalization.
As per an analysis from Nomura, the global memory sales will grow 56.7% in 2017 to a record $116 billion, and the NAND segment to increase 51.2% to $51 billion.
SK Hynix Inc., a core subsidiary of SK group, is among the five biggest South Korean corporations. Since the beginning of this year, the group has capitalized aggressively in the semiconductor material and chemical businesses. The SK group also plans to invest 4.9 trillion won on acquisitions and mergers in 2017.