SK Enpulse to sell off chip processing units in China

SK Enpulse Co., a South Korean semiconductor part and equipment maker, said on Wednesday it will sell off its chip pre-manufacturing processing units in China at 87.8 billion won ($66.3 million).

The company has decided to divest of a 75% stake in its wet chemical subsidiary SKC-ENF Electronic Materials Ltd. to Jiangsu Yoke Semiconductor Materials Co. at 50 billion won and sell a 90% stake in chip materials cleaning affiliate SKC Solmics Hong Kong Ltd. to Shenyang Yichuang Precision Technology Co. at 37.8 billion won, according to its regulatory filing on Sept. 13.

The transaction of the two assets will be completed by Jan. 31 of 2024, SK Enpulse added.

SK Enpulse, formerly SKC Solmics, will strengthen its high-value semiconductor materials and part business by selling off the China-based assets.

Its parent and SK Group's chemical materials affiliate SKC Ltd. integrated its chip materials and part business with SK Enpulse in January this year. The parent company is spurring on the business of chip pre-manufacturing process materials, such as chemical mechanical planarization (CMP) pads and blank masks.

The company is also boosting its semiconductor post-manufacturing process business. It acquired US glass substrate maker Absolics Inc. for $240 million in 2021 and signed an agreement to buy a 45% stake in chip test equipment manufacturer ISC Co. at 522.5 billion won last year. 

Absolics is building a plant in the US state of Georgia to produce glass substrates for semiconductor packaging with an aim to complete construction by the end of this year and commercialize the products as early as the second half of 2024.  

Write to Jae-Fu Kim at hu@hankyung.com

Jihyun Kim edited this article.