Seoul [South Korea], October 16 : SKC Co., a materials unit of South Korea's SK Group, will absorb and merge with SK enpulse Co., its semiconductor materials investment subsidiary as part of a reorganization move to focus on high-value-added semiconductor back-end packaging, according to a report by Pulse, the English service of Maeil Business Newspaper Korea.
As per the report, SKC announced on Wednesday that its board approved a plan to merge with SK enpulse during a meeting on Tuesday.
The merger is expected to be completed within this year after the remaining procedures are finalized.
"The merger will allow SKC to secure about 380 billion won (USD 267.4 million) in funds, including SK enpulse's cash holdings and proceeds from recent business divestitures," the report said.
The company plans to invest these funds in advanced semiconductor packaging and high-value materials businesses, including the commercialization of glass substrates.
"Since 2023, SKC has been pursuing the sale of its semiconductor materials businesses as part of a medium to long-term portfolio transformation strategy. It has successively divested SK enpulse's fine ceramics, wet chemicals and cleaning, and blank mask divisions, while spinning off its back-end equipment business into a new entity, I-SEMI Co., which was later transferred to semiconductor test equipment maker ISC Co.," the report noted
The reorganization positions SKC's semiconductor materials business around two pillars, ISC's testing equipment business and the glass substrate business of Absolics Inc., which is moving toward commercial production in Georgia, the United States.
"The divestiture of SK enpulse's non-core businesses marks the completion of our transition to a high-value, back-end-focused portfolio," the report quoted an SKC official.
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