SKC Launches Full-Scale Expansion of Semiconductor Materials Business... Initiates Phase 2 Business Model Innovation

SKC Solmix Incorporated as 100% Subsidiary
Accelerated Investment Decisions in Semiconductor Materials
Business Model Innovation with Dual Pillars of Mobility and Semiconductor Materials

[Asia Economy Reporter Hwang Yoon-joo] SKC is fully incorporating its subsidiary SKC Solmix as a wholly owned subsidiary to actively advance its semiconductor materials and components business. By making SKC Solmix a wholly owned subsidiary, SKC will be able to make investment and management decisions related to semiconductor materials more swiftly.

On the 12th, SKC held a board meeting and decided to acquire 42.2% (25,972,532 shares) of SKC Solmix shares traded on the market through a public tender offer and a comprehensive stock swap, thereby making SKC Solmix a wholly owned subsidiary (100% stake). After completing announcement procedures, the public tender offer will be conducted from the 13th until September 2nd. The tender offer price will be calculated considering a premium. Shares not participating in the tender offer will be exchanged for SKC shares. The exchange ratio is approximately 1 SKC share for 14.52 SKC Solmix shares.

SKC made this decision to actively grow its semiconductor materials and components business. SKC Solmix primarily operates in semiconductor process components made from silicon, quartz, alumina, and silicon carbide. Recently, it has expanded into the semiconductor parts and equipment cleaning business. SKC Solmix plans to establish a cleaning factory in Wuxi, China within this year and commercialize it next year.

The full acquisition of SKC Solmix is also part of the second phase of business model (BM) innovation. SKC, which has been pursuing BM innovation for several years, completed the first phase by launching SK Nexilis, which boasts the top manufacturing technology for copper foil, a core material for electric vehicle batteries. In the second phase, SKC plans to continue BM innovation focusing on semiconductor and eco-friendly materials businesses, selected as future growth engines.

SKC has already been steadily expanding its semiconductor materials business. It secured domestic technology for high-end blank masks and completed a blank mask factory in Cheonan last year. The goal is to complete customer certification and rapidly commercialize within this year. Additionally, SKC became the second in the world to secure technology to manufacture CMP pads applicable to the entire memory semiconductor process and is currently constructing a second CMP pad factory in Cheonan.

An SKC official said, "This decision is the plan to promote the second phase of business model innovation, announced five months after declaring the completion of the first phase focused on mobility materials business in March this year," adding, "It signals SKC’s intention to strengthen semiconductor-related business actively following the mobility materials business."