SKC, the chemical and film division of the SK Group, is seeking various strategic methods for entering the semiconductor materials market. Nothing specific has been disclosed yet, but the company is determined to develop the business into a new growth power, along with Solmics in the solar power business.
On October 30, a SKC representative said, “The group is interested in semiconductor materials,” and added, “It is forming a new R&D organization, pursuing original technology as well as M&A or partnerships, and plans on expanding in directions that can help not only the group but other partners.” Then he added, “In the company’s long-term vision, semiconductor-related chemicals are included, and it is doing well so far through strategic alliances.”
Regarding this, SKC is contacting about 10 other companies, but mentioned that the names should not yet be disclosed.
According to the government and related industries, the size of the global semiconductor market last year was US$304.4 billion (about 323 trillion won). Korean companies such as Samsung Electronics and SK Hynix have about 15% market share. However, the rates of localization for semiconductor material and equipment are each 48.5% and 20.6%. So the government will come up with policies to foster the related businesses.
Also, SKC will maintain chemical businesses such as polyol polymers to act as a stable cash cow, while concentrating on fostering SKC Solmics and the semiconductor materials business as a new growth power. In fact, SKC Solmics, which suffered red figures since the business recession in the solar power market in 2011, has reduced a sales deficit by 55% in Q3, creating a stepping stone for turnaround.
In addition, it will strengthen its global market domination in the high value film business, for which it recently built a production factory in China, by increasing production size. A company associate said, “We are planning on expanding the size of the Chinese Jiangsu factory in the near future,” then added, “SKC HAAS is maintaining its 30% market share in the domestic optic film market, and even if the display industry worsens, we’re not worried, because the polarization of wealth will only intensify.”