DB HiTek sees capacity utilization rate rise to 80%

South Korea's semiconductor foundry company DB HiTek Co. last month saw its capacity utilization rate rise to the mid-80% level thanks to rising demand for power chips.

Its performance was in stark contrast to gloomy industry forecasts that the rate would sink to the 60% level.

The company on Thursday said its capacity utilization rate rose from the 70% range late last year to the mid-80% level last month thanks to steady demand for automotive and industrial power semiconductors. It focused on specialized products customized for each customer especially in the automotive and industrial fields.

"In the first half of last year, the rise in new development even when the fab (plant) was fully operational led to customer trust and had a positive effect on recovery of demand," DB HiTek said.

DB HiTek focused on development of new processes and products while minimizing chip size. A prime example was its power semiconductor processing technology for cars, whose demand is growing with the expansion of the electric vehicle and self-driving car markets last year. In addition, the company is investing in equipment to expand output capacity for high-voltage power semiconductors.

"Demand for automotive and industrial power semiconductors is stable and the future outlook looks good," a DB HiTek source said.

Write to Ji-Eun Jeong at jeong@hankyung.com