Doosan Group is set to expand its semiconductor business portfolio by acquiring SK Siltron, a semiconductor wafer manufacturer.

On the 17th, SK Inc. announced that it had selected Doosan as the preferred bidder for the sale of its stake in SK Siltron. The two sides plan to determine whether to sign a final contract after additional due diligence and related procedures. SK Siltron manufactures and sells 200mm (8-inch) and 300mm (12-inch) silicon wafers for semiconductors, and holds the world’s third-largest competitiveness in the 12-inch wafer segment. If the sale is completed, Doosan is expected to acquire the 70.6% stake in SK Siltron currently owned by SK. The entire company is valued at around KRW 5 trillion, and the acquisition price is estimated to be around KRW 4 trillion.

SK has been promoting the sale of SK Siltron since the beginning of this year. Private equity (PE) firms including MBK Partners and Hahn & Company, as well as Doosan, competed for the acquisition, but Doosan was ultimately chosen.

This is seen as the result of aligned interests between the two companies. Doosan Group has recently been strengthening its semiconductor materials and equipment business by successively acquiring semiconductor testing company Doosan Tesna and its subsidiary Engion. With the acquisition of SK Siltron, Doosan will be able to build a business structure that spans from semiconductor materials to testing. The market view is that Doosan, which solidified its position in heavy industry through the acquisition of Doosan Bobcat in 2007, has now secured another opportunity to reshape the group’s portfolio into that of a semiconductor company through this deal.

SK Inc. has been pursuing the sale of SK Siltron as part of a “rebalancing” initiative aimed at enhancing the group’s financial stability and investing in new businesses. If several trillion KRW in funds flow in through this transaction, the group’s financial structure is expected to improve significantly. It will also secure investment resources for the reorganization into new artificial intelligence (AI)-centered businesses, a direction emphasized by SK Group Chairman Chey Tae-won. Building on the performance of SK hynix in the high-bandwidth memory (HBM) semiconductor business, SK Group is drawing up a blueprint to transform itself from a simple semiconductor manufacturer into an AI company.

SK Group is already reported to have sold more than KRW 10 trillion in assets this year alone through rebalancing. This includes SK Innovation’s securitization of its stake in a liquefied natural gas (LNG) power generation subsidiary to raise KRW 3 trillion, as well as the disposal of assets such as SK Specialty (KRW 2.06 trillion) and its stake in Vingroup (KRW 1.3 trillion).

Attention is also focusing on the 29.4% stake in SK Siltron held by Chairman Chey. In 2017, when SK Inc. acquired SK Siltron shares previously owned by LG Corp. and others, Chey purchased the stake held by the creditor group led by Woori Bank. If Chey’s stake is excluded from the current sale process, it is viewed that cooperative relations with SK hynix and others will remain viable even after SK Siltron is sold.

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