SKC Contributes Semiconductor Materials and Components Business to SKC Solmix in Kind

[Asia Economy Reporter Park So-yeon] SKC is integrating its semiconductor materials and components business into SKC Solmics, a 100% subsidiary specializing in semiconductor equipment parts. SKC, which has been promoting BM innovation in the semiconductor field, will integrate its semiconductor materials and components business into SKC Solmics and accelerate growth centered on CMP pads, blank masks, and cleaning business.

On the 23rd, SKC held a board meeting and decided to contribute its semiconductor materials and components business in kind to SKC Solmics. The target includes semiconductor materials and components businesses such as CMP pads, blank masks, and wet chemicals that SKC has been operating, with an appraisal value of approximately 151.3 billion KRW.

SKC will complete the necessary preliminary procedures, such as court approval and corporate merger notification, by the first quarter of next year. Afterwards, SKC will receive about 80.94 million new shares issued by SKC Solmics to complete all procedures.

This year in the second half, SKC made SKC Solmics a 100% subsidiary, laying the foundation for growth through business integration. Since deciding to make SKC Solmics a wholly owned subsidiary in August, SKC has been conducting a public tender offer and comprehensive stock exchange targeting 42.3% of external shares. Subsequently, on December 8, SKC internalized SKC Solmics by securing all external shares subject to acquisition.

SKC Solmics has shown an improving performance trend this year. Up to the third quarter of this year, SKC Solmics’ sales reached 130.4 billion KRW, approaching last year’s full-year sales of 138.8 billion KRW. Operating profit was 12 billion KRW, significantly surpassing last year’s total of 7.6 billion KRW. Considering the recent semiconductor big cycle atmosphere, SKC Solmics’ annual performance improvement is expected to increase significantly.

After integration, SKC Solmics plans to continuously secure specialized capabilities and expand its business as SKC’s investment company in the semiconductor field. SKC Solmics, which has focused on semiconductor process parts manufactured from silicon, quartz, alumina, and silicon carbide, has already expanded its business. In April this year, SKC Solmics declared its entry into semiconductor parts and equipment cleaning and plans to complete a cleaning plant in Wuxi, China next year and prepare for commercialization.

In addition, by adding the business contributed in kind by SKC, synergy will be maximized and growth accelerated. Since entering the CMP pad business in 2016, SKC has been focusing on strengthening its semiconductor business. Last year, SKC began domestic production of high-end blank masks used to etch electronic circuit patterns on semiconductor wafers. At the end of last year, it completed a production plant in Cheonan and is conducting customer certification.

Next to the blank mask plant, a second CMP pad plant for semiconductor planarization processes is under construction. Its production capacity is twice that of the first plant and is scheduled to start operation in the first half of next year. The product lineup is also expanding. After domesticating tungsten process products, which were previously dependent on imports, in 2016, SKC succeeded in domesticating kappa process products last year and oxide process products this year.

An SKC official said, "By combining SKC Solmics and SKC’s semiconductor materials and components business, we will be able to maximize synergy in discovering new items, marketing, and R&D aspects. SKC Solmics will secure specialized capabilities in semiconductor materials and components centered on CMP pads, blank masks, and cleaning business and will continue to grow as a specialized investment company in the semiconductor field."

This content was produced with the assistance of AI translation services.