SK Hynix, the world’s second-largest memory chip maker, will acquire South Korea-based Key Foundry, a chip contract manufacturer, for 576 billion won ($492.41 million).

The 8-inch wafer foundry manufactures chips such as power management, display driver and microcontroller unit semiconductors.

SK Hynix had been in talks to acquire Key Foundry, in which it had a minority stake earlier, since the first half of this year, South Korean media previously reported.

SK Hynix said the acquisition is expected to double its current 8-inch foundry capacity. It already has a chip contract manufacturing unit, SK Hynix System IC.