South Korea's second largest semiconductor contract manufacturer split the chip design department to resolve conflicts of interest with customers
CTOnews.com May 26 news, according to South Korea's Ddaily news agency, South Korea's second largest semiconductor foundry service provider East Hi-Tech (DB HiTek) recently split in charge of semiconductor chip design IC division, it will operate as an independent legal entity DB GlobalChip.
▲ Tuyuan East Hi-Tech East Hi-Tech pointed out that the important reason for the split is to solve the conflict of interest between its products and customers and to win more customers for the wafer foundry business. Analysts at SK Securities believe that this is a major step forward in the business strategy of Eastern Hi-Tech, which has been criticized for its main products and the product lines of some OEM customers.
Eastern Hi-Tech said that the initial products of DB GlobalChip will mainly be high value-added DDI driver chips for OLED and Mini LED televisions, while developing power semiconductors for displays, hoping to provide comprehensive solutions related to display products.
In 2022, East Hi-Tech's overall revenue is 1.68 trillion won (currently about 8.954 billion yuan), of which IC design business accounts for 17% of the revenue, the main customer is Samsung display. CTOnews.com learned in the financial meeting documents that Eastern Hi-Tech aims to increase its IC design revenue by 2.2 times in 2027, and expects its future revenue to reach 4 trillion won (currently about 21.32 billion yuan) and DB GlobalChip to reach 2 trillion won (currently about 10.66 billion yuan).
