South Korean manufacturer of memory chips SK Hynix officially announced the separation of business in the contract manufacturing of chips. Thanks to this reorganization, the company intends to increase its competitiveness.

As reported by the news agency Yonhap referring to the statement of SK Hynix, made on Wednesday, May 24, the company decided to separate the division that is engaged in the mass production of chips (not memory) for the order of customers who do not have their own production capacities to a new subsidiary. The deal is expected to close by June 30, 2017, it will cost the vendor 171.6 billion won ($ 152 million).

SK Hynix expects that, by separating itself from the business of contract manufacturing of chips, the company will be able to strengthen its position in this market, where TSMC.

According to IHS Markit, in 2016, SK Hynix's revenue from contract manufacturing orders was 116 billion won ($ 104 million), which is a small indicator in the company's total turnover (17.2 trillion won / $ 15.3 billion). The volume of the world market of contract semiconductor production increased by 9.6% last year, reaching $ 49.2 billion, researchers.