SK Inc.'s Global Investment Capability Combined with SK Materials' Advanced Materials Business Competitiveness
5.1 Trillion KRW Investment by 2025
Rapidly Securing Next-Generation Technologies Including Core Electric Vehicle Materials
[Asia Economy Reporter Hwang Yoon-joo] SK Inc. is expanding its management scope in mergers and acquisitions (M&A) and investments through its merger with SK Materials. The strategy is to leap to become the world's No. 1 semiconductor and battery materials company by 2025.
SK Inc. announced that the merged entity with SK Materials will officially launch on December 1. This comes about four months after the merger announcement in August. The merged company aims to become the global leading advanced materials company by combining SK Inc.'s global investment competitiveness with SK Materials' business competitiveness in advanced materials. The new shares of the merged company are scheduled to be listed on December 27.
Amid intensifying global competition among advanced materials companies, the strategy is to secure a competitive edge by quickly investing in four key areas: battery materials, power and compound semiconductors, semiconductor materials, and display materials.
First, SK Inc. will continue investing in next-generation anode and cathode materials based on its already secured battery core materials portfolio through investments such as in Wason, the world's No. 1 copper foil manufacturer. In the anode materials sector, SK Materials has already started establishing a next-generation silicon anode joint venture factory with the U.S. company Group14, targeting mass production in 2023. In the next-generation cathode materials market, SK Inc. is in discussions to establish a joint venture with Beijing Easpring, a leading cathode technology company in China.
SK Inc. is also actively investing in the power and compound semiconductor sector, essential for electric vehicles, autonomous driving, and 5G, and is expected to play a significant role in the localization of next-generation advanced materials technology.
In the case of SiC (silicon carbide) power semiconductors, SK Inc. has already secured competitiveness through investments in Yes Powertech. SK Inc. plans to promote localization of key materials such as gallium nitride (GaN) SiC semiconductors and VCSELs, which are essential for 5G communications and autonomous driving, while building a full value chain for electric vehicle semiconductors from wafers to chips.
In the semiconductor materials sector, expansion and new business investments are actively underway. SK Inc. plans to invest 1 trillion KRW to expand production facilities for specialty gases and bulk gases, including nitrogen trifluoride (NF3), its flagship product with the world's No. 1 market share, and monosilane (SiH4), aiming to nearly double annual production capacity. Alongside this, the company is also expanding its portfolio to include cutting-edge EUV (extreme ultraviolet) photoresists and materials for CIS (CMOS image sensors) that consume very low power.
An SK Inc. official stated, "The advanced materials sector, where global competition is intensifying, requires sophisticated management strategies and bold decision-making. SK Inc. will enhance corporate value as a global core advanced materials company through synergies from the merger with SK Materials."
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