Hanwha Aero to Spin Off 'AI' Hanwha Vision and 'Semiconductor Equipment' Hanwha Precision Machinery

Establishment of Hanwha Industrial Solutions
"Enhancing Business Expertise and Maximizing Efficiency"

Hanwha Aerospace announced on the 5th that it will establish a new holding company, tentatively named Hanwha Industrial Solutions, by spinning off Hanwha Precision Machinery, which is responsible for next-generation semiconductor equipment business, and Hanwha Vision, an AI solution specialist company.

The newly established company, Hanwha Industrial Solutions, will have Hanwha Vision and Hanwha Precision Machinery as 100% subsidiaries. After the spin-off, Hanwha Corporation will hold 33.95% stakes each in Hanwha Aerospace and Hanwha Industrial Solutions (tentative name).

Hanwha Aerospace integrated its defense affiliates by absorbing Hanwha Defense in November 2022 and Hanwha Corporation’s defense division in April 2023. In May last year, it expanded its business area to marine defense by acquiring Hanwha Ocean. This spin-off effectively completes the restructuring of its defense business structure.

Hanwha Aerospace stated, "Through this business structure reorganization, we will maximize management efficiency and strengthen our identity as a defense company to enhance corporate and shareholder value."

Hanwha Industrial Solutions (tentative name) also plans to accelerate its business growth strategy. Hanwha Vision (AI and security solutions) and Hanwha Precision Machinery (next-generation semiconductor front- and back-end process equipment) will establish a swift and specialized decision-making system through independent management to maximize management efficiency and corporate value.

Hanwha Vision has continuously invested in expanding solutions including next-generation cybersecurity, AI, and cloud technologies, expanding its global market and achieving annual sales of 1 trillion KRW for two consecutive years. Hanwha Precision Machinery developed ALD (Atomic Layer Deposition) equipment, a semiconductor front-end process tool, and supplied it to global semiconductor companies. It is also promoting the development of a new process equipment called 'Hybrid Bonder' for HBM (High Bandwidth Memory) to lead the AI era.

The spin-off ratio between Hanwha Aerospace and the new company is 9:1. After the board resolution on the 5th, the spin-off is expected to be completed in September following an extraordinary general meeting of shareholders and allocation of new shares. Subsequently, Hanwha Industrial Solutions (tentative name), the holding company for the civilian sector, plans to relist after the spin-off and merge with Hanwha Vision to start anew as a business holding company.