DuPont Electronics & Imaging (E&I) has signed an agreement with SK Siltron to sell its Compound Semiconductor Solutions (CSS) business, which makes materials for electric motors.
The $450 million sale to SK Siltron, based in South Korea, is expected to close by the end of 2019, subject to customary regulatory approvals for closing.
The transaction follows a series of spin-offs by DuPont over the last few years, including popular brands Teflon and Pioneer. The spin-offs are part of Dupont’s strategy of active portfolio management and disciplined capital allocation to further align the portfolio with high-return opportunities.
“The DuPont CSS business has state-of-the-art technologies for SiC wafer production to serve the power electronics market, but it is not a strategic priority for the E&I business,” said Jon Kemp, president of DuPont Electronics & Imaging. “Given its strategic focus, we believe SK Siltron will be a better owner and that the CSS business will thrive under SK Siltron’s ownership.”
SK Siltron is part of SK Group, Korea’s third largest conglomerate with revenues of $140 billion last year – which owns SK Telecom and SK Hynix.
The acquisition will give SK Siltron stable wafer supply. The company ships wafers mainly to South Korea’s local chipmakers such as Samsung and SK Hynix.
