SK Siltron Co. announced Sunday that it had completed the acquisition of Dupont’s Silicon Carbide Wafer (SiC Wafer) unit.
SK Group‘s semiconductor material producer signed a purchase agreement to acquire DuPont de Nemours Inc.’s wafer business. The decision made through a board meeting in September last year, closing the deal on February 29.
Considered as a bold global technology investment, the $450 million (534 trillion won) acquisition would beef up SK Siltron’s presence in the advanced material sector. The subsidiary expects the deal to increase SiC wafers’ production and generate additional jobs in the U.S.
The investment meets the demand from consumers and governments for environmental solutions and sustainable energy. SK Siltron said that it would continue to invest in related fields even after the acquisition.
As companies scramble to enter the electric vehicle market and expand 5G telecommunications, the demand for power semiconductors is rapidly increasing. SiC wafers’ heat resistance, high hardness, and high voltage tolerance make them an excellent material to produce power semiconductors.
The industry expects SK Siltron, based in Gumi South Korea, to maximize its R&D and production capabilities. The acquisition would also create synergy between the company’s current major businesses and other rapidly expanding markets.
SK Siltron is South Korea’s only producer of semiconductor silicon wafers and one of the top five global wafer manufacturers. The company boasts an annual sales of $1.3 billion (1.54 trillion won). This figure accounts for approximately 17 percent of global silicon wafer sales (based on 300mm).
The Seoul-based company sells silicon wafers overseas through subsidiaries and offices situated in five locations, such as Japan, China, U.S., Taiwan, and Europe. Established in 2001, the U.S. subsidiary sells silicon wafers to eight customers, such as Micron and Intel.
SK Siltron is a subsidiary of SK Group, the third-largest conglomerate in South Korea. SK Group established North America as a global hub by investing in various markets. Over the past three years, the company has invested almost $5 billion (5.9 trillion won) in EV batteries, biopharmaceuticals, materials, energy, chemicals, and ICT.