● A KRW 522.5 billion investment was decided in the board of directors meeting on July 7, including the acquisition of the largest shareholder’s stake (KRW 347.5 billion) and new shares (KRW 175 billion).

● After the acquisition of ISC, the world’s number one manufacturer of silicone rubber sockets for testing semiconductor chipsets, SKC will further search for additional growth engines. 

● Following the glass substrate business, SKC has added a high value-added business for the semiconductor back-end process, seeking global expansion to Vietnam (ISC production _ base_).

SKC (CEO & President Woncheol Park) has acquired ISC, a global semiconductor test solution provider, to add a new growth engine to its semiconductor materials/parts business, one of its three growth pillars, along with EV battery and eco-friendly materials.

On July 7, SKC held a board of directors meeting and decided to acquire 35.8% of ISC’s shares owned by the current largest shareholder Helios Private Equity Fund I for KRW 347.5 billion and also to acquire ISC’s newly issued shares worth KRW 200 billion jointly with Helios Private Equity. SKC is investing KRW 175 billion in ISC’s new shares, expanding its total stake to 45%. Immediately after the board of directors meeting, the Stock Purchase Agreement (SPA) and the Share Sub_ script_ion Agreement (SSA) were signed.

SKC plans to finance funds for the acquisition without compromising its existing investment capacity or being funded from outside. ISC will start anew as an SKC subsidiary upon completing the necessary procedures, such as filing the corporate merger and obtaining relevant approvals.

The acquisition of ISC will significantly strengthen SKC’s semiconductor post-process materials/parts business. ISC was founded in 2001 and is known for test sockets, its main product, used to test electrical characteristics of packaged semiconductor chipsets, which are essential consumables in the semiconductor back-end process. Also, it should be noted that its future growth potential is deemed excellent because demand for test sockets is growing rapidly as the packaging technology of major semiconductor manufacturers is advancing to improve the performance of their chipsets.

In 2003, ISC became the first in the world to commercialize test sockets utilizing silicone rubber materials and continues to hold an overwhelming first place in this market today with over half of the market share. It also has strong technological capabilities with more than 500 patents, the most in the industry. According to the semiconductor industry, silicone rubber sockets already account for over 80% of memory semiconductor test sockets and are expected to further expand rapidly in the non-memory market as well.

In addition to silicone rubber sockets, ISC has a wide range of test solutions, such as pogo sockets made of copper alloy previously used for electrical characteristic testing sockets, burn-in test sockets, and interface boards. SKC plans to utilize ISC as a platform to expand its semiconductor materials/parts business. To this end, it plans to actively pursue additional mergers and acquisitions (M&A) as well as grow the existing business after the acquisition.

Through this acquisition, SKC will further strengthen its portfolio in the semiconductor back-end process and carry on with its business model innovation efforts. SKC already has CMP pads and blank masks for the front-end process through its subsidiary, SK npulse. Also, through Absolics Inc., SKC is working to commercialize semiconductor glass substrates, which are considered a game changer in the packaging market of the back-end process.

In addition, SKC is expected to position itself as a materials/parts solution enterprise offering a comprehensive high-value-added product lineup in both the front-end and back-end processes. Its global expansion will further be accelerated to Vietnam, the production _ base_ of ISC, following the SK nexilis copper foil manufacturing facility in Malaysia.

An SKC executive said, “This acquisition has served to further strengthen our semiconductor back-end process materials/parts business strengthening our semiconductor back-end process materials/parts business, allowing us to achieve another business model innovation as a global ESG materials solution enterprise and secure additional footholds for growth” and added, “We will contribute to the continuous growth and happiness of both SKC and ISC and to enhance the competitiveness of the semiconductor industry in South Korea as well.

ISC Stock Purchase Agreement Signing Ceremony (July 07, 2023)

[SKC announced on July 7 its acquisition of ISC, a semiconductor test solution provider. SKC CEO & President Woncheol Park (right) and CEO & President Che Moe Chun of Helios PE, the largest shareholder of ISC, are signing the agreement at the SPA signing ceremony.]