SKC to Acquire Semiconductor Testing Company ISC for 522.5 Billion KRW

World's No.1 Company in 'Silicone Rubber Socket'

SKC is acquiring ISC, a global company in the semiconductor test solution field. Following secondary battery materials and eco-friendly materials, the company plans to develop the semiconductor materials and components business as the third major growth pillar.

On the 7th, SKC held a board meeting and decided to acquire 35.8% of ISC shares held by the current largest shareholder, Helios No.1 Private Equity Fund, for 347.5 billion KRW. Additionally, SKC will jointly acquire newly issued ISC shares worth 200 billion KRW with Helios Private Equity. SKC will invest 175 billion KRW in ISC’s new shares, increasing its total stake to 45%. Immediately after the board meeting, SKC signed a Stock Purchase Agreement (SPA) and a Subscription Agreement (SSA) respectively.

SKC plans to secure the funds for this acquisition without impairing its existing investment capacity or raising additional external capital. Once the necessary procedures such as corporate merger notifications and permits are completed, ISC will start anew as a subsidiary of SKC.

With the acquisition of ISC, SKC will significantly strengthen its materials and components business in the semiconductor back-end process sector. Established in 2001, ISC’s main product, test sockets, are used to inspect the electrical characteristics of semiconductor chipsets after packaging. These are considered essential consumables in the semiconductor back-end process. As major semiconductor manufacturers advance packaging technology to improve chipset performance, demand for testing is rapidly increasing, making the future growth potential excellent.

At the stock purchase agreement signing ceremony held on the 7th at SKC headquarters in Jongno-gu, Seoul, Park Won-cheol, President of SKC (center), Jeon Jae-mo, CEO of Helios PE, the largest shareholder of current ISC (second from left), and other key stakeholders posed after signing the contract.
[Photo by SKC]

ISC commercialized the test socket using silicon rubber material for the first time in the world in 2003 and holds an overwhelming No.1 position in this market with over 50% market share. The company also boasts excellent technological capabilities with more than 500 industry-leading patents. According to the semiconductor industry, silicon rubber sockets already account for over 80% of memory semiconductor test sockets, and they are expected to expand rapidly into the non-memory market in the future.

In addition to silicon rubber sockets, ISC possesses various test solutions including pogo sockets made of copper alloy material, burn-in test sockets, and interface boards, which are existing electrical characteristic test socket products. SKC plans to utilize ISC as a platform for its semiconductor materials and components business to expand its operations. To this end, SKC will actively pursue not only investments to expand existing businesses after the acquisition but also additional mergers and acquisitions (M&A).

Through this acquisition, SKC will further strengthen its portfolio in the semiconductor back-end process sector and continue innovating its business model. SKC holds CMP pads and blank masks for the front-end process through its investee SK Enpulse, and is promoting the commercialization of semiconductor glass substrates, considered a ‘game changer’ in the packaging market of the back-end process, through Absolix.

By securing test solutions, SKC is expected to establish itself as a materials and components solution company with a well-rounded lineup of high value-added products across both the front-end and back-end semiconductor process sectors. Global expansion will also accelerate, extending from the Malaysian SK Nexilis copper foil plant to Vietnam, where ISC’s production base is located.

An SKC official stated, “With this acquisition, we have further strengthened our semiconductor back-end materials and components business, achieving another business model innovation as a ‘global ESG materials solution company’ and securing an additional growth foundation.” The official added, “We will contribute not only to the continuous growth of SKC and ISC and the happiness of all members but also to strengthening the competitiveness of South Korea’s semiconductor industry.”

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