SK Siltron, SK Group’s semiconductor wafer division, will purchase the wafer business of DuPont to reinforce its market existence, the company said Tuesday.
U.S. and Japanese firms are leading the industry. Wafers are small strips of semiconductor material used for chip manufacturing in electronics.
The fourth-largest wafer producer in the world conducted a board conference on Tuesday and chose to buy Silicon Carbide (SiC) Wafer company for $450 million from DuPont.
With the authorization of national and abroad permits, it intends to finish the procurement cycle within the year.
The purchase of the SiC device from DuPont will provide SK Siltron with a stable supply of wafers and also generate synergies within the company.
According to SK Siltron, the high-quality SiC wafers provide a strong basis for a fresh generation of industrial motor controls and power supplies that make better use of electricity while running more efficiently.
“Because of the wafer boom, the purchase demonstrates our powerful desire to nurture semiconductor company and generate important synergies within the company, including the EV battery company of SK Innovation,” an officer from Siltron said.
Due to the growing electric vehicle market and the growth of artificial intelligence, the internet of stuff (IoT) and 3D NAND flash technology, the semiconductor wafer industry is anticipated to develop rapidly. HIS Markit data anticipated that the SiC wafers industry in 2025 would achieve $5.2 billion.
Wafers are regarded to be effective inventions that can be applied to electric vehicles and other manufacturing apps.
The investment is also regarded timely as Korean businesses have tried difficult to locate important manufacturing products amid Japan’s escalating political and tradeline.
To create semiconductors and screen boards, Japan has placed export restrictions on three main components.
“We intend to merge our production capacities with DuPont’s R&D to optimize procedures to ensure industry competitiveness,” the representative said.
SK Siltron is Korea’s only wafer manufacturer.