SKC to merge with South Korea’s SK enpulse to boost chip back-end business

SKC Co., a materials unit of South Korea’s SK Group, will merge with its semiconductor materials investment subsidiary SK enpulse as part of a strategic reorganization aimed at enhancing its focus on high-value-added semiconductor back-end packaging, reports 24brussels. The merger was approved by SKC’s board during a meeting on Tuesday and is expected to be finalized within this year, following the completion of necessary procedures.

The merger will enable SKC to secure approximately 380 billion won (USD 267.4 million) in funds, which includes cash holdings from SK enpulse and proceeds from recent business divestitures. The company plans to funnel these resources into advanced semiconductor packaging and high-value materials sectors, particularly in the commercialization of glass substrates.

Since 2023, SKC has actively pursued the divestiture of its semiconductor materials businesses as part of a long-term portfolio transformation strategy. It has successfully divested divisions including fine ceramics, wet chemicals and cleaning, and blank masks from SK enpulse, while creating a new entity, I-SEMI Co., for its back-end equipment business, which has now been transferred to semiconductor test equipment maker ISC Co.

This strategic reorganization positions SKC’s semiconductor materials business around two main areas: ISC’s testing equipment business and Absolics Inc.’s glass substrate operations, which are advancing toward commercial production in Georgia, United States. An SKC official stated, “The divestiture of SK enpulse’s non-core businesses marks the completion of our transition to a high-value, back-end-focused portfolio.”