The Elec: DB Hitek plans to spin off fabless business

Mar. 14, 2023 /SemiMedia/ — According to The Elec, foundry DB Hitek said a few days ago that the company plans to spin off its fabless business to better focus on its main chip foundry business.

DB Hitek said it has long considered becoming a pure-play foundry in the chip industry. Due to the sharp drop in demand caused by the recent global economic recession, DB Hitek’s capacity utilization rate has fallen, and it emphasizes that the company must spin off its business units and focus on saving the foundry business.

DB Hitek said it would not list the newly formed company and that the motion would have to be passed at a shareholders meeting this month.