DB HiTek, Starting Anew as a Pure Foundry Company Without Fabless Business

'Spin-off of Brand Division' as an Agenda for the Shareholders' Meeting

DB HiTek is making a fresh start as a foundry company through a business structure reorganization that spins off its design business (fabless) into a subsidiary.

On the 7th, DB HiTek held a board meeting to discuss the agenda of spinning off the brand business division responsible for semiconductor design. This move aims to actively resolve conflicts of interest with customers that inevitably arose while concurrently operating the design business and to focus capabilities on the foundry business. Jo Gi-seok, CEO of DB HiTek, stated, “In line with the strategic direction of global foundries, we will separate the foundry and fabless businesses to further enhance their respective expertise and strengthen competitiveness in the global market.”

The method chosen for the spin-off is a physical division. DB HiTek explained, “By making the new company a 100% subsidiary, all performance of the new company will be reflected, so there will be no revenue decline due to the spin-off. Rather, we can expand the business into high value-added product lines that were previously inaccessible due to the existing brand business, and in the mid to long term, we expect performance improvements from the new company’s entry into new businesses.”

Additionally, they added, “Since the new company will have DB HiTek, which has abundant semiconductor business experience and foundry capabilities, as its parent company, it can secure a stable foundry supply chain and increase synergy.”

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