Acquisition of Korea's Only Silicon Carbide Power Semiconductor Manufacturer and More
[Asia Economy Reporter Moon Chaeseok] SK Group's investment holding company, SK Inc., is making a full-scale entry into the power semiconductor market for electric vehicles.
On the 26th, SK Inc. announced that it will invest approximately 120 billion KRW to acquire Yes Power Technics, the only domestic SiC (silicon carbide) power semiconductor design and manufacturing company, and for a paid-in capital increase. SK Inc. explained the purpose of the investment as "to accelerate the promotion of the high-growth, high-profit SiC power semiconductor business."
When SK Inc. acquires 985,113 shares of Yes Power Technics, its stake is expected to increase to 95.81%. SK Inc. had previously invested 26.8 billion KRW in Yes Power Technics in January last year, securing a 33.6% stake.
Founded in 2017, Yes Power Technics is the only domestic company equipped with a SiC power semiconductor production system, with sales of about 1.5 billion KRW in 2021. Based on SK Inc.'s investment, further facility investments are expected. Power semiconductors refer to semiconductors that control the direction of current and power conversion in electronic products, electric vehicles, hydrogen vehicles, and 5G communication networks that require power.
SiC power semiconductors maintain over 98% power conversion efficiency in extreme environments of high temperature and high voltage, offering durability, safety, and versatility, rapidly replacing the existing silicon (Si) power semiconductor market. Although demand for SiC power semiconductors is surging mainly in electric vehicles, a few companies in the US and Europe form an oligopoly market, raising concerns about the urgent need for domestic production of SiC power semiconductors.
SK Inc., which has SK Siltron, the only domestic SiC wafer manufacturer, as a subsidiary, is expected by the industry to create synergy in the semiconductor industry as well as domestic semiconductor production through this acquisition.
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