SK Hynix beefing up by buying U.S. chipmakerSK Hynix, the world's second-largest memory chipmaker, said yesterday it has clinched a deal to buy a U.S. chip-controller developer in a bid to beef up its competitiveness in the NAND flash memory chips market.
Under the deal with Link_A_Media Devices (LAMD), a world leader in data storage controller technology, SK Hynix will purchase the entire stake in the California-based company. Financial terms of the deal were not disclosed. Controllers provide higher speed and reliability for NAND flash memory chips, which are used to store data and files in smartphones, tablet computers, digital cameras and audio players.
The takeover will help SK Hynix cope with market conditions where tablet and smartphone makers demand not just discrete memory chips but complete memory solutions consisting of memory, the controller and packaging, company officials said. "The acquisition of LAMD and its outstanding technology will drive up the competitiveness of SK Hynix in the NAND flash memory market," said CEO Kwon Oh-chul. "We will try to meet diverse customer demand in a timely manner and accelerate our expansion of high value-added NAND flash solutions."
The market share for total memory solutions is expected to jump from last year’s 60 percent to 80 percent of the entire NAND flash memory market by 2015, according to industry watchers. In mid-February, SK Group took over Hynix Semiconductor and renamed it SK Hynix.
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