Doosan acquires SK Siltron for W2.3tr, targets W3tr in sales by 2031

Doosan Corp. is acquiring SK Siltron — the world's third-largest semiconductor wafer maker — for about 2.3 trillion won ($1.6 billion), sharply expanding its footprint in the semiconductor industry. The deal extends Doosan's reach from its existing back-end testing operations into wafer manufacturing, a front-end process, further strengthening the group's semiconductor and advanced materials portfolio.

SK Inc. and Doosan Corp. each held board meetings Friday and disclosed that they had approved a share purchase agreement covering a 70.6% stake in SK Siltron. SK Inc. had selected Doosan Corp. as the preferred bidder in December last year after evaluating the company's growth potential, employment stability and acquisition terms. The final transaction price will be confirmed after further adjustments.

The more than seven months that elapsed between the preferred-bidder designation and the SPA signing had fueled speculation in some quarters that the deal might fall through. SK Siltron's valuation had been revised upward on the back of a semiconductor market boom driven by the spread of AI, and some questioned whether the sale conflicted with SK Group's AI-focused business strategy. The two sides ultimately closed the deal Friday, however, after sustaining negotiations on the basis of SK Group's broader portfolio rebalancing stance and mutual trust between the parties.

The transaction gives Doosan Corp. a new growth engine and a sustainable earnings base. SK Inc. will use the proceeds from the stake sale to improve its financial health and secure funding for future growth investments.

Founded in 1983, SK Siltron is the only company in South Korea with the technology to manufacture silicon wafers for semiconductors. Since joining SK Group in 2017, it has grown into a core link in the semiconductor value chain and holds a global third-place position in the 12-inch (300mm) wafer market.

Wafers serve as the substrate for semiconductor integrated circuits and are a high-value-added material that affects yields across the entire front-end manufacturing process. The technology and quality barriers to entry are steep, and SK Siltron is one of just five companies — alongside Shin-Etsu Chemical, Sumco, GlobalWafers and Siltronic — that together account for more than 90% of the global market.

On that foundation, SK Siltron counts Samsung Electronics, SK hynix and TSMC among its customers, sustaining a stable business. Last year it posted sales of about 2 trillion won and operating profit exceeding 400 billion won. SK Siltron's US subsidiary, which operates a silicon carbide wafer business, will be wound down.

Doosan Corp., an operating holding company, will substantially strengthen its business portfolio through the acquisition. The Doosan Group has built its operations around three main pillars: energy (Doosan Enerbility, Doosan Fuel Cell and others), smart machines (Doosan Bobcat, Doosan Robotics and others), and semiconductors and advanced materials (Doosan Corp.'s Electronics Business Group, Doosan Tesna and others). Having entered the back-end semiconductor business in 2022 with the acquisition of Doosan Tesna, the country's top semiconductor testing firm, Doosan will now extend into front-end operations through the SK Siltron deal.

With its Electronics Business Group already performing well on the back of growing supply of copper-clad laminates for AI accelerators, Doosan plans to add the high-barrier wafer business to build a sustainable earnings structure and a stable source of dividend funding.

Doosan Corp. said it intends to keep SK Siltron unlisted after the acquisition and focus on enhancing shareholder value.

Wafer demand is forecast to grow at a steady annual rate of around 7 percent through 2032, driven by semiconductor market expansion fueled by rising AI investment. Doosan has set a sales target of about 3 trillion won for SK Siltron by 2031, banking on that market growth.

In the memory wafer segment, the company plans to pursue a global top-two position by deepening ties with existing key customers and winning new ones. In the non-memory wafer market — long dominated by two Japanese firms, Shin-Etsu Chemical and Sumco — Doosan intends to steadily grow its market share through continued technology development and customer acquisition.

"This acquisition gives Doosan Corp. a new growth engine while at the same time establishing a sustainable earnings base," a Doosan official said. "We will work even harder to enhance shareholder value on the strength of a stable business portfolio."