Targets KRW 3 trillion in revenue by 2031 amid growing AI-driven wafer demand
Doosan Corp. is expanding its presence in the semiconductor industry through the acquisition of SK Siltron, South Korea's only silicon wafer manufacturer. The deal broadens Doosan's semiconductor portfolio from testing services into front-end wafer manufacturing, a key segment of the semiconductor supply chain.
Doosan announced on July 31 that its board of directors approved a Share Purchase Agreement (SPA) to acquire a 70.6% stake in SK Siltron from SK Inc. The transaction is valued at approximately KRW 2.3 trillion, with the final purchase price to be determined following customary post-closing adjustments.
Founded in 1983, SK Siltron is the only company in South Korea that manufactures semiconductor-grade silicon wafers. The company generated approximately KRW 2 trillion in revenue last year and recorded operating profit exceeding KRW 400 billion.
Silicon wafers serve as the foundation on which semiconductor chips are fabricated, making them one of the most critical materials in front-end semiconductor manufacturing. Because wafer quality directly affects chip yield and performance, the business is regarded as a high-value technology sector with significant barriers to entry.
The global silicon wafer market is highly concentrated, with more than 90% of market share controlled by five manufacturers: SK Siltron, Shin-Etsu Chemical, SUMCO, GlobalWafers, and Siltronic. SK Siltron produces both 300mm (12-inch) and 200mm (8-inch) silicon wafers and is recognized as one of the world's top three suppliers of 300mm wafers.
Doosan expects the wafer market to benefit from continued growth in AI-related semiconductor demand. The company projects annual market growth of around 7% and has set a target of approximately KRW 3 trillion in annual revenue for SK Siltron by 2031.
The acquisition is also intended to diversify Doosan's business portfolio and strengthen its long-term earnings base. Doosan's Electronics Business Group has recently posted strong performance driven by increasing shipments of copper clad laminates (CCLs) for AI accelerators. By adding the wafer business, which is supported by long-term supply agreements, the company aims to further enhance earnings stability.
The transaction also reinforces the Doosan Group's semiconductor strategy. In 2022, the group entered the semiconductor industry through the acquisition of Doosan Tesna, a leading semiconductor testing company. The addition of SK Siltron expands the group's business from semiconductor back-end testing into front-end wafer production.
Looking ahead, Doosan plans to strengthen its position in the memory wafer market by expanding business with existing customers while securing new accounts, with the goal of becoming one of the world's top two suppliers. The company also intends to increase its presence in the non-memory wafer market, where Japanese manufacturers currently hold a dominant position, through continued technology development and customer expansion.
Separately, SK Siltron's U.S. subsidiary, which operates its silicon carbide (SiC) wafer business, will be liquidated.
A Doosan official said the acquisition secures a new long-term growth engine while strengthening the company's sustainable earnings foundation. The official added that SK Siltron will remain a privately held company and that Doosan will continue to focus on enhancing shareholder value through a stable and diversified business portfolio.
