SK Siltron sale to benefit both SK, Doosan

SK Siltron's headquarters in Gumi, North Gyeongsang Province / Courtesy of SK Siltron

The ongoing talks over the sale of SK Group’s semiconductor wafer unit SK Siltron to Doosan Group are raising expectations that the deal could benefit both conglomerates, as the transaction is seen playing a key role in reshaping their future portfolios.

According to industry officials on Monday, SK Group and Doosan Group are expected to sign a deal on the sale of SK Siltron in the near future, under which Doosan Corp., the latter’s holding company, would acquire a 70.6 percent stake in SK Siltron from SK Inc., the holding company of SK Group. The transaction is valued at around 2 trillion won ($1.34 billion).

Doosan Corp. was selected as the preferred bidder for SK Siltron in December last year, but progress on the deal had been delayed as SK Siltron’s silicon carbide wafer business for electric vehicles continued to post losses. The sale process, however, appears to be gaining momentum after the company has recognized the business as a loss worth 400 billion won in its 2025 annual earnings released on March 31.

SK Siltron is one of the world’s top silicon wafer manufacturers for semiconductors. The company posted 2.08 trillion won in revenue and 407 billion won in operating profit last year. It is estimated that more than 50 percent of its sales are coming from Samsung Electronics and SK hynix.

In recent years, Doosan Corp. has been seeking to expand its semiconductor-related portfolio, centering on semiconductor substrate materials such as copper clad laminates. Since taking over Tesna, a back-end testing firm, in 2022, the group has been broadening its presence across both the front- and back-end processes of chip manufacturing.

If the acquisition is completed, it would further strengthen the group’s presence across the semiconductor value chain.

Hana Securities analyst Kim Min-kyung said Doosan Corp.’s electronics business group is expected to post a 14 percent year-on-year increase in revenue and a 28 percent rise in operating profit this year, adding that the acquisition of SK Siltron could begin contributing to earnings as early as the second half.

“The whole acquisition process is expected to be completed within this year, with regulatory approval likely to be finalized between late in the first half and early in the second half,” she said.

Former U.S. President Joe Biden listens to an explanation on silicon carbide wafers at SK Siltron CSS, a U.S. subsidiary of SK Siltron, in Michigan, Nov. 29, 2022. AP-Yonhap

Doosan Corp. said in a regulatory filing on April 1 that it plans to expand its domestic and overseas manufacturing capacity for its electronics business, as well as to establish a new overseas production subsidiary in 2026.

From SK Siltron’s perspective, the sale to Doosan could also be beneficial. As the company is currently affiliated with SK Group, home to key client SK hynix, it has faced concerns over potential conflicts of interest when dealing with other chipmakers. A sale to Doosan could ease such concerns, potentially making it easier for the company to expand its client base.

SK Group can also gain momentum in its ongoing efforts to reorganize its business portfolio, improving fiscal prudence and securing liquidity to focus more on artificial intelligence (AI) and semiconductor manufacturing.

As part of those efforts, SK Group in March last year closed a deal to sell its 85 percent stake in SK Specialty to domestic private equity firm Hahn & Company for 2.6 trillion won. SK Specialty is the world’s leading producer of specialty gases for semiconductors and displays.

“The deal appears likely to be a win-win for both sides,” an industry official said. “For Doosan, it would help further complete its semiconductor materials value chain, while for SK, it would secure investment resources to focus more on AI and semiconductors, which are key pillars of its future business.”