SK Telecom (NYSE:SKM) announced today that SK China has established a KRW 19-billion joint venture called \"SKMtek\" in partnership with MtekVision, Korea\'s leading fables semiconductor company.
Based in Shenzhen, China, the new joint venture marks a milestone for SK China as it enters the rapidly growing system-on-chip (SoC) market sector in China for the first time. Leveraging Korea\'s semiconductor design expertise and China\'s semiconductor manufacturing experience, SKMtek will provide system-on-chip for mobile devices, including smartphones and tablet PCs, and later expand into solutions and non-telecom semiconductors.
SK China was established in July 2010 through the joint investment of SK Group subsidiaries to ensure the integrated management of SK\'s business in China. SK Telecom\'s China CIC, which is headed by President Oh Se-Hyun, operates SK China\'s ICT business.
SK China and MtekVision will jointly invest to establish SKMtek by transferring semiconductor technology and business infrastructure. The new joint venture will have an initial capital of KRW 19 billion, which will later increase in line with business expansion. SK China and MtekVision will hold a 60% and 40% stake in SKMtek, respectively. SKMtek will be headquartered in Shenzhen\'s High-Tech Industrial Park.
Hahm Hee-Hyeok, Senior Vice President and Head of China Platform Business Division of SK China will serve as the first managing director of SKMtek, which will be fully operational as early as March in Shenzhen, Guangdong Province.
SKMtek Managing Director Hahm Hee-Hyeok said, \"SKMtek will offer cost-effective, high-performance products by combining Korea\'s remarkable semiconductor design technology with China\'s strong semiconductor manufacturing base. The company plans to achieve its sales target of KRW 400 billion in 2016, within five years from the establishment of the company.
SKMtek will first focus on system-on-chip for mobile devices, such as smartphones and tablet PCs. From 2013, it aims to expand its business to the overall ICT industry including automobile and electronic appliances as well as cutting-edge convergence business areas, including u-Health and smart grid.
The establishment of SKMtek is expected to bring mutual benefits to SK China and MtekVision as SK China will be able to expand its existing ICT business to further include core solutions for mobile devices like SoC and related software while MtekVision maximizes its semiconductor sales in China by making full use of SK China\'s well-established infrastructure and network.
More information, please visit SK telecom website http://www.sktelecom.com/eng/jsp/n_prcenter/PressReleasesView.jsp or contact Mr. Brian Huang at Seraphim,solution partner of Mtekvision, tel: 26984540 ext. 259 or email to firstname.lastname@example.org