Buying Batteries
SKC announced on July 7 that it has decided to acquire a 45% stake in ISC for a total of 522.5 billion won (US$400 million). This decision came following a board of directors meeting. The company will acquire a 35.8% stake held by the majority shareholder for 347.5 billion won and invest an additional 175 billion won in new shares issued by ISC.
SKC is pushing for a battery materials and parts business as one of the three main growth drivers, along with secondary battery materials and eco-friendly materials. With the acquisition of ISC, SKC is able to significantly strengthen its material business in the semiconductor post-processing sector.
ISC’s main product, the test socket, is used for the electrical characteristic inspection of semiconductor chipsets after packaging. It’s a key consumable in semiconductor post-processing. Demand for testing is rapidly increasing as major semiconductor manufacturers strive to improve chipset performance through advanced packaging technologies.
ISC was the first to commercialize test sockets using silicon rubber material in 2003, and it still holds more than half of the market share, remaining the overwhelming leader. According to sources in the semiconductor industry, silicon rubber sockets already occupy more than 80% of the memory semiconductor test socket market, and it’s projected to rapidly expand in the non-memory market as well.
SKC plans to use ISC as a platform for its semiconductor material and parts business and expand its business that way. The company plans to actively pursue additional mergers and acquisitions as well as investments for existing business expansion after the acquisition. An SKC official stated, “With this acquisition, we’ve once again innovated our business model and secured another stepping stone for growth.”