SK hynix Acquires Firmware Arm of Belarus-Based Softeq Development

Manufacturers of SRAM, DRAM, flash and other semiconductor devices, South Korean chipmaker SK hynix Inc. has acquired the firmware arm of Softeq Development FLLC, a company based in Minsk, Belarus, and a partner of SanDisk since 2005, to bolster its NAND flash solution business and to improve its capability to develop 3D V-NAND flash memory chips.

The value of the deal was not revealed.

“The takeover will allow to secure talented firmware experts, and gain competitiveness in the NAND flash sector,” the acquirer said in a press release.

The company also stated: “SK hynix expanded its global R&D network to cover the U.S., Italy, Taiwan, and Belarus, adding it plans to continue the expansion to cover Russia and Eastern Europe.”

It did not reveal the value of the deal.

Thirty years old, profitable $14 billlion company SK hynix, former Hynix, has decided to be a strong force in several NAND flash activities, not only in MLC NAND flash chip, but also for controllers and SSDs. Like Toshiba, SanDisk and Samsung, SK hynix is now vertically integrated for the production from chips to SSDs, the best position to succeed in this market.

DRAMeXchange analyst firm classified the company as number 5 in the world among the branded NAND flash chip makers with a market share of 8.2% following Samsung, Toshiba, SanDisk and Micron and preceding. It was ranked number 6 by Trendfocus in SSD shipped in 1Q14 with 3.3% market share.

But during company’s first quarter 2014 ended March 31, 2014, the bit shipment and the ASP dropped 8% and 14% respectively for NAND flash. “Both declined as the demand was weak due to seasonal effect,” explained SK hynix.

Before the arm of Softeq Development, SK hynix acquired:

• May 2012: Ideaflash S.r.l., formerly Elpida Memory (Italy) S.r.l, based in Agrate Brianza, Italy, developing develops analog circuits, microcontrollers, and NAND flash memory, and renamed SK Hynix Italy S.r.l
• June 2012: Start-up Link_A_Media Devices in Santa Clara, CA, renamed SK hynix Memory Solutions in HDD ans SSD controllers
• August 2013: eMMC device controller division of Taiwan-based Innostor Technology to establish an R&D center, SK hynix Flash Solutions Taiwan Ltd.
• May 2014: PCIe product line of Violin Memory, Inc. for $24 million