SKC to Set Up JV in China to Supply Materials for Wireless Rechargeable Devices

SKC has agreed to establish a joint venture (JV) with LY Tech in China to supply materials for wireless rechargeable devices to global smartphone makers.

LY Tech is already supplying 60% to 70% of the materials for wireless rechargeable devices used by global smartphone manufacturers. This brightens the future prospects of the joint venture company's wireless charging materials business.

SKC announced on October 1 that the company signed a memorandum of understanding (MOU) on the joint venture with LY Tech in Dongtai City, Jiangsu Province, China on September 28. Under the MOU, the two companies agreed to quickly strengthen their partnership.

SKC provides material technology and production facilities to the joint venture. SKC has been engaged in the wireless charging materials business for many years based on its know-how in magnetic materials. The company has accumulated the know-how since its videotape manufacturing business in the past.

LY Tech will receive materials for wireless charging devices from the joint venture, while conducting marketing for customers. The company has supplied materials for wireless charging devices to smartphone makers in China and abroad.

Materials for wireless charging devices to be produced by the joint venture enhance the wireless charging efficiency of smartphones and block and absorb electromagnetic waves.

Demand for the materials is on a sharp rise as increasingly more and more smartphone makers have been adopting the wireless charging method lately. In particular, when wireless charging technology is applied to drones, robots and automobiles, the market will grow faster.

The two companies agreed to establish a joint venture by the first half of next year after finishing negotiations and establishing the JV by the end of this year. The joint venture’s commercial production and sales will kick off in the second half of next year after receiving approval from its corporate customers. In 2020, the joint venture will expand its customer base and supply.