SK Hynix recently acquired a department of Taiwan-based Innostor Technology specializing in the design of eMMC device controller chips, according to industry sources.

　　SK Hynix also plans to form a new IC design company in Taiwan, said the sources, adding that the eMMC controller business bought from Innostor will be turned into an independent entity.

　　In response, Innostor said that the company will put its future focus on solutions for USB 3.0 flash devices and industrial memory products, and has decided to sell its team for the design of eMMC controllers as a result of changes to its product strategy. Innostor also claimed the company currently has sufficient working capital, dismissing speculation suggesting Innostor was struggling to keep the business that required huge capital investments.

　　The total cost to develop an eMMC controller product line is estimated at almost NT$300 million (US$10 million), which includes expenses for masks requiring NT$100-150 million every year, the sources disclosed. Such development process should complete in two years.

　　Innostor did not elaborate further on the sale of its eMMC controller business.

　　SK Hynix was unavailable for comment at the time of publication.

　　SK Hynix' previous acquisition of US-based Link_A_Media Devices (LAMD) already suggested that the memory chip vendor is looking to in-house develop and manufacture controller chips for its embedded NAND flash products.