Promoting independent 'brand division' within this year
Expand sectors such as PMICs and image sensors
DB HiTek will spin-off its semiconductor design business. The company plans to develop it into a business that is comparable to its flagship semiconductor consignment production (foundry). DB HiTek plans to spin-off the 'brand division' that has been in charge of semiconductor design and launch it as an independent corporation within this year. An official from DB HiTek said, "We are considering to spin-off the brand division to strengthen the expertise of the semiconductor design business."
The brand division has functioned as a business by outsourcing system semiconductors such as organic light emitting diode (OLED) and DDI used in liquid crystal display (LCD). The number of employees is 150. Sales are between 300 and 400 billion won. DB HiTek recently appointed Gyu-cheol Hwang, former managing director of Samsung Electronics, as the head of the brand division (president). The organization has reportedly been reorganized prior to the spin-off. After joining Samsung Electronics in 1990, President Hwang worked in the system LSI division of the semiconductor sector for over 30 years. At Samsung Electronics' System LSI, he held various major positions including DDI product development team leader, product planning group leader, sales team leader, and strategic marketing team leader. After the brand division spin-off, Hwang will reportedly serve his first CEO position.
DB Group is expected to reorganize its semiconductor business with foundry and semiconductor design as the two major axes. It is planning to grow its semiconductor design business to the size of its foundry business with annual sales of around 900 billion won. The design division is expected to expand its product portfolio with TV, mobile, and information technology (IT) OLED DDI. Some predict that the design sector will be strengthened with power management semiconductors (PMIC) and image sensors. It is expected to expand the number of design experts from the current 70 to more than 100. There is also a possibility that it will move the brand division from the Bucheon plant to Pangyo.
It also began recruiting human resources. It will recruit staff for each field, such as DDI application and device design. An official from DB HiTek said, “We believe that the brand division has sufficient business foundations for 15 years," adding that, “We are considering to spin-off the brand division and foundry division even further to enhance competitiveness."
By Staff Reporter Ji-woong Kim jw0316@etnews.com