South Korea's No. 2 chipmaker SK hynix Inc. plans to establish a joint venture in China to expand its foundry business, industry sources said Wednesday.

According to the sources, who declined to be identified, SK hynix's board of directors plans to discuss the establishment of a joint venture specializing in the foundry businesses.

The foundry business refers to making chip designs for other companies that do not have a semiconductor fabrication plant.

SK hynix System IC Inc., a wholly owned foundry business of SK hynix that was launched in July, could hold a 50 percent stake in the new venture, the insiders claimed.

If a deal is made, market watchers predicted the project could bolster the firm's competitiveness in the system chips field.

Officials from SK hynix declined to comment on the rumor.

By: DocMemory
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