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Wednesday, June 18, 2008

Hynix to Buy 30% Stake in Siliconfile

Hynix kept a low profile for half a year or so after proclaiming Siliconfile to be its image sensor partner. Today Trading Markets reports that Hynix board has agreed to buy a 30% stake in SiliconFile for about 8.16 billion won ($7.9 million). Hynix said it will buy an initial 15% stake in KOSDAQ-listed SiliconFile and will acquire another 15 percent over time.

"We have decided to expand our strategic alliance, encompassing all the functions from development to production to marketing, which should maximize the strength of each company," Hynix said in a statement.

Siliconfile had quite successful 2007 year, but it seems to be unable to keep pace with pixel shrink. In theory, alliance with a strong foundry partner should help its advance to smaller pixels. However, as a novice in image sensor production, Hynix probably needs more time to develop a competitive CIS process. I'm sceptical that such an alliance would propel any of them to market leaders. Not in near future, at least.

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