DB HiTek, Foundry Utilization Rate in the 80% Range..."Effect of Power Semiconductors"

"Equipment Investment Underway to Expand Capacity"

DB HiTek announced on the 9th that it raised its foundry (semiconductor contract manufacturing) utilization rate to the mid-80% range last month, driven by increased demand for power semiconductors.

DB HiTek explained that increasing the number of new development projects while the fab was fully operational in the first half of last year helped enhance customer trust and recover demand. Focusing on developing power semiconductors specialized for each customer in the automotive and industrial sectors contributed to maintaining a stable utilization rate.

Since the mid-2000s, DB HiTek has been growing its foundry business centered on power semiconductors. Compared to general logic process products dominated by Taiwanese foundry companies such as TSMC and UMC, the market size is smaller but is judged to have higher growth potential and added value. Having technological competitiveness also allows maintaining market dominance for a long period, which is advantageous.

DB HiTek Bucheon Campus View / Photo by DB HiTek

DB HiTek has been committed to technology development, such as introducing the industry's first 0.18-micron class Bipolar CMOS DMOS (BCDMOS) process in 2008. As a result, the number of customers in the power semiconductor field increased sixfold from about 40 in 2010 to approximately 240 currently. The number of new product development projects also nearly tripled from around 200 annually to about 600. Market research firm Omdia forecasts that the power semiconductor market could grow at an average annual rate of 6% until 2026, reaching a scale of $39.2 billion.

DB HiTek is maximizing the current per unit area of power semiconductors to reduce chip size, providing a wide voltage range while expanding its portfolio. It is developing new processes and products in line with the trend of increasing voltage requirements for automotive and industrial products. Equipment investments are also underway to expand production capacity (capability) for high-voltage power semiconductors.

Meanwhile, DB HiTek plans to submit a proposal to spin off its Brand Business Division at the regular shareholders' meeting scheduled for the end of this month. The Brand Business Division, which operates in the fabless sector, will be separated into a 100% subsidiary tentatively named 'DB Fabless,' allowing the company to focus on its foundry business. The company explained that "a pure play foundry based on customer trust is the industry's strategic direction."

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