Doosan expedites transition into AI infrastructure powerhouse

Doosan Group Chairman Park Jeong-won, left, poses with Nvidia CEO Jensen Huang after their ceremonial pitch at a baseball game in Seoul, June 7. Courtesy of Doosan Group

Doosan Group is accelerating its transformation into an artificial intelligence (AI) infrastructure powerhouse after reaching a deal to acquire chip wafer manufacturer SK Siltron at what analysts described as “a reasonable price.”

The acquisition will give the group a presence across the semiconductor manufacturing value chain, spanning wafers, substrate materials and testing, while expanding its portfolio beyond heavy industry and strengthening semiconductors as a key earnings pillar.

On Friday, Doosan Corp. and SK Inc. announced that the former will take over a 70.6 percent stake in SK Siltron held by the latter at 2.3 trillion won ($1.61 billion). The deal came seven months after Doosan Corp. was selected as the preferred bidder for the stake.

The prolonged negotiations had fueled speculation that SK was seeking a significantly higher price following the surge in semiconductor demand. However, the two sides ultimately agreed on a 2.3 trillion won deal, while including an earn-out clause under which SK will receive additional proceeds if SK Siltron's earnings exceed a predetermined threshold.

The market describes the agreement as a “good deal.”

"Considering that the share prices of SK Siltron's global peers have risen an average of 122 percent since the beginning of the year, the acquisition is a good deal as Doosan secured the company without the price increase the market had initially feared," Eugene Investment & Securities analyst Lee Ju-hyung said.

Lee cited Deloitte Anjin’s analysis that SK Siltron’s revenue for this year and next year will reach 2.15 trillion won and 2.36 trillion won, respectively, achieving 4.5 percent and 9.8 percent growth year-on-year.

Its margin for earnings before interest, taxes, depreciation and amortization will improve 22 percent last year to 30 percent this year and 31 percent in 2027, while the global silicon wafer shipments will grow to 15.5 billion square inches in 2028 from 12.8 billion square inches last year.

For Doosan, the acquisition completes its presence across the semiconductor materials value chain, from wafers and copper clad laminates, a key substrate material, to back-end testing.

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

SK Siltron is widely regarded as the world's third-largest supplier of 300-millimeter silicon wafers.

The rapid expansion of the AI industry is seen as the biggest driver of growing wafer demand. As investments for generative AI and data centers expand, the demand for advanced chips are also growing, supporting long-term growth in the wafer market.

Doosan said it will capitalize on favorable market conditions to achieve 3 trillion won in sales by 2031 and become the world’s second-largest supplier of memory chip wafers.

With the acquisition, Doosan Group is building an AI infrastructure portfolio that spans the key components of the ecosystem, from semiconductor materials and power generation to robotics.

In the energy sector, Doosan Enerbility and Doosan Fuel Cell have drawn market attention with clean energy technologies, including small modular reactors, gas turbines and hydrogen fuel cells, which are increasingly viewed as key power sources for AI infrastructure.

Doosan Robotics and Doosan Bobcat are also expected to benefit from the growing adoption of physical AI through robotics and smart machines, and the addition of semiconductor materials business further broadens the group's portfolio across the AI value chain.

"The acquisition secures a new growth engine for Doosan Corp. while establishing a sustainable earnings base," a Doosan official said. "Building on a stable business portfolio, we will continue to enhance shareholder value."