DB HiTek to expand capacity to meet demand from shortage

DB HiTek said on Monday that it plans to expand its production capacity within the year to meet rising demand from customers due to the current global ship shortage.

The chip maker will add 9,000 wafers per month in production capacity within 2021.

A company spokesperson said its two fabs in Bucheon and Eumseong were running at full capacity. They said DB HiTek was expecting customer orders throughout 2021 to be solid.

The company was improving the productivity of its fabs to add 9,000 wafers per month in capacity, they added.

DB HiTek runs 8-inch fabs, which are mainly used to manufacture chips such as image sensors, power management chips and display drivers.

Its two fabs had a combined capacity of 100,000 wafers per month as of 2014. This increased to 129,000 wafers per month as of the third quarter of 2021, as the company expanded capacity to meet high demand.

The latest expansion will be apply to the fab at Eumseong.

DB HiTek broke its sales record for two straight years. It recorded 807.4 billion won in sales in 2019 and 935.9 billion won in 2020.

Due to the high demand for foundry, it also posted record profits in the first quarter of this year. It saw 243.7 billion won in sales and had an operating margin rate of 25%.