'Controversy over Chinese Technology Leakage' MagnaChip Semiconductor Announces 500 Billion KRW Investment Plan in Korea

[Asia Economy Reporter Jeong Hyunjin] MagnaChip Semiconductor, which had raised concerns about technology leakage to China, announced on the 20th that it will invest approximately 500 billion KRW over the next five years in its research and development (R&D) centers in Seoul and Cheongju, as well as its production facility in Gumi, South Korea.

MagnaChip stated that it will invest about 340 billion KRW in domestic R&D centers in Seoul and Cheongju, and following a 38 billion KRW investment last year to expand its power semiconductor production facility in Gumi, it plans to invest an additional 93 billion KRW over the next five years. Depending on the power semiconductor market conditions, it is also considering increasing the investment scale to over 110 billion KRW.

MagnaChip Semiconductor was spun off in October 2004 when SK Hynix (then Hynix Semiconductor) separated its non-memory division to focus on memory semiconductors, and was acquired by Citigroup Venture Capital in the United States. Listed on the New York Stock Exchange, MagnaChip Semiconductor decided earlier this year to sell all shares of its U.S. headquarters to limited partners related to the Chinese private equity fund 'Wise Road Capital' and is currently proceeding with the sale.

Because of this, some have raised concerns about semiconductor technology leakage as MagnaChip Semiconductor, originally from Hynix Semiconductor (the predecessor of SK Hynix), is being transferred to a Chinese private equity fund. In response, Wise Road Capital stated its intention to raise acquisition funds by recruiting limited partners (LPs) from regions outside China.

This content was produced with the assistance of AI translation services.