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Doosan to acquire SK Siltron stake for $1.7 billion, boosting semiconductor business

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

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  • Doosan Group has agreed to acquire a 70.6% stake in SK Siltron, a leading wafer manufacturer, for 2.3 trillion won ($1.7 billion), significantly bolstering its semiconductor business.
  • The deal excludes the personal stake of SK Group Chairman Chey Tae-won, which is valued at approximately 960 billion won ($730 million).
  • This acquisition positions Doosan to strengthen its semiconductor value chain, adding wafer manufacturing to its existing businesses in semiconductor packaging and testing.

Doosan Group is set to significantly expand its presence in the semiconductor industry with the acquisition of a 70.6% stake in SK Siltron, a major manufacturer of semiconductor wafers, for 2.3 trillion won ($1.7 billion). The deal, approved by the boards of both SK Inc. and Doosan Corporation, is expected to close by January 31, 2025.

This acquisition agreement will secure a future growth engine for Doosan Corporation and establish a sustainable profit base.

— Doosan RepresentativeThe representative explained the strategic importance of the acquisition for Doosan's future business development.

This strategic move allows Doosan to integrate wafer manufacturing, a crucial upstream process, into its existing semiconductor operations. Doosan Corporation already produces materials for printed circuit boards used in semiconductor packaging, and its subsidiary, Doosan Tesna, specializes in testing for system semiconductors, which are part of the post-processing stage. The acquisition of SK Siltron, a global leader in silicon wafer production and ranked third worldwide in 12-inch wafer market share, completes Doosan's semiconductor value chain.

SK Siltron, which supplies essential silicon wafers to major chipmakers like SK Hynix, Samsung Electronics, Micron, Intel, and TSMC, reported annual revenue of 2.057 trillion won and operating profit of 193.1 billion won last year. Doosan anticipates that SK Siltron's wafer manufacturing business will grow at an average annual rate of 7%, setting a revenue target of approximately 3 trillion won by 2031.

SK Siltron will not be listed, and based on a stable business portfolio, we will strive to enhance Doosan Corporation's shareholder value.

— Doosan RepresentativeThe representative outlined the post-acquisition strategy regarding SK Siltron's market status and shareholder value.

Notably, the acquisition excludes the 29.4% personal stake held by SK Group Chairman Chey Tae-won. This stake is valued at around 960 billion won ($730 million) and is reportedly not part of the current transaction, though Doosan is said to be interested in acquiring the remaining shares. The exclusion of Chey's personal shares comes amid ongoing legal proceedings related to his divorce settlement, where a significant sum was ordered to be paid to his former wife.

The disposal of Siltron shares is intended to secure funds for enhancing financial soundness and securing future growth engines.

— SK Inc.SK Inc. stated its objective behind selling the stake in SK Siltron.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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