Samsung, SK Hynix Shun Takeovers for Chip Biz

SK hynix has made no takeover deals for its memory chip business since it acquired a Belarus-based firmware company in June 2014. (image: SK Hynix)

SEOUL, Oct. 6 (Korea Bizwire) — Samsung Electronics Co. and SK hynix Inc., two major South Korean memory chip makers, have clinched no overseas takeover deals for the semiconductor business this year, industry data showed Tuesday, in contract to their global peers who’ve been strongly engaged in the merger and acquisition (M&A) activities.

Samsung Electronics has made no takeover deals for its memory chip business since it acquired Proximal Data, a U.S.-based server solid state drive (SSD) caching software company, in October last year.

Instead, the tech firm has been rushing to buy those in other business areas, such as mobile payment and digital signage that Samsung has picked as part of its next growth drivers.

This year alone, Samsung took over mobile payment solution startup LoopPay Inc.; Simpress, a Brazil-based print solution company; and commercial display manufacturer Yesco Electronics. 

SK hynix has been on a similar path. The takeover of a Belarus-based firmware company in June 2014 was its last M&A.

Their moves draw a contrast to global rivals who have been heavily involved in M&As in the memory chip sector over the past year.

In March, Dutch chip company NXP Semiconductors NV took the industry by storm after it announced a US$11.8 billion deal to buy Freescale Semiconductor Inc.

After that, global chip maker Intel Corp. bought Altera Corp. for $16.7 billion won. In July, China’s state-run Tsinghua Unigroup proposed a takeover offer to U.S. Micron Technology Inc., the world’s No. 3 memory chipmaker.

Industry watchers said joining the wave of global M&As is of less concern for the two South Korean chipmakers, who have already invested big in their new production lines on home turf. 

Both Samsung and SK hynix have begun to build new chip fabs in two provincial cities in South Korea — their biggest domestic investment — on which they have promised to spend 15 trillion won (US$12.8 billion) and 31 trillion won each.

“For now, it’s likely that they will focus on bolstering what they’ve got, rather than eyeing more M&As outside,” an expert said.’

(Yonhap)