SEOUL, July 31 (AJP) -South Korea's Doosan Group will acquire a controlling stake in SK Siltron, the world's third-largest silicon wafer manufacturer, in a deal that reshapes the country's semiconductor supply chain while providing SK Group with fresh capital to accelerate its artificial intelligence (AI) push.
SK Inc. approved the sale at a board meeting on Friday, agreeing to sell its combined 70.6 percent stake in unlisted SK Siltron for about 2.3 trillion won ($1.65 billion). The transaction values the wafer maker at the mid-5 trillion won range, making it one of the largest semiconductor acquisitions in South Korea in recent years.
SK shares ended Friday 19 percent up at 557,000 won while those of Doosan Corp. closed at 30-percent daily limit at 1,170,000 won, although the deal was announced after the market closed.
The sale covers SK Inc.'s direct 51 percent stake and another 19.6 percent held through a total return swap (TRS) arrangement. An earn-out clause was included, allowing SK to receive additional payments if SK Siltron exceeds agreed financial targets after the acquisition.
The remaining 29.4 percent stake, owned personally by SK Group Chairman Chey Tae-won, was not included in the board resolution but is expected to be acquired separately by Doosan.
The companies delayed the transaction for more than seven months after Doosan was selected as the preferred bidder last December, as the AI-driven semiconductor boom significantly increased SK Siltron's valuation.
Rather than renegotiating the purchase price, the two sides bridged the valuation gap through the earn-out arrangement.
SK Siltron generated 2.06 trillion won in revenue and 193.1 billion won in operating profit last year.
The acquisition marks a strategic milestone for Doosan as it assembles a more comprehensive semiconductor portfolio spanning upstream materials and downstream testing.
Doosan's Electronics Business Group already manufactures copper clad laminate (CCL), a key substrate material used in printed circuit boards for AI accelerators such as Nvidia's Blackwell chips. Affiliate Doosan Tesna is South Korea's leading wafer testing company.
Adding SK Siltron gives Doosan control over one of the semiconductor industry's most critical upstream materials — silicon wafers — completing a value chain that stretches from wafer production and electronic materials to semiconductor testing.
The acquisition also advances Chairman Park Jeong-won's strategy of transforming Doosan from a heavy-industry conglomerate into a technology-focused group centered on semiconductors, AI, robotics and small modular reactors.
SK Siltron is South Korea's only dedicated silicon wafer producer and ranks third globally in the 300-millimeter wafer market behind Japan's Shin-Etsu Chemical and SUMCO. Its customers include Samsung Electronics and Intel.
Industry observers believe SK Siltron could broaden its customer base under Doosan, as its previous affiliation with SK Group — parent of memory giant SK hynix — had limited opportunities with some competing chipmakers.
Doosan expects the silicon wafer business to grow at an average annual rate of about 7 percent and has set a revenue target of around 3 trillion won by 2031.
The deal will require significant financing, with Doosan expected to combine internal cash, bank borrowings and asset monetization to fund what is expected to be the group's largest acquisition.
For SK Group, the sale represents another major step in its multiyear portfolio rebalancing program, under which it has been divesting non-core assets to strengthen its balance sheet and concentrate resources on AI, semiconductors, cloud infrastructure and data centers.
SK said the proceeds will be used to improve financial stability while funding future growth businesses, particularly its AI full-stack strategy.
Following the signing of the share purchase agreement, the transaction will require regulatory clearance, including merger approval from the Fair Trade Commission and government approval related to national core technologies, as SK Siltron's advanced 300mm crystal-growth technology is designated as a strategic national technology.
If completed, SK Siltron will leave the SK Group about nine years after joining the conglomerate in 2017 and begin a new chapter under Doosan's semiconductor platform.
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