Deal would reshape Doosan’s semiconductor exposure but faces valuation, labor, and integration risks
Doosan Group has been named the preferred bidder to acquire a controlling stake in SK Siltron, the world’s third-largest semiconductor chip manufacturer, in a transaction valued at around 3 trillion won. SK Inc., the holding company of SK Group, said on the 17th that it selected Doosan Corporation as the preferred negotiating partner for the sale of its 70.6% stake.
The proposed deal is part of SK Group’s broader effort to secure liquidity through asset sales, while for Doosan it represents a major bet on semiconductor materials. If completed, the transaction would mark one of the largest semiconductor-related acquisitions in South Korea in recent years.
Financial Context: Liquidity vs. Valuation
SK Group acquired its 70.6% stake in SK Siltron in 2017 for about 790 billion won. Since then, the chip maker has expanded steadily, with revenue rising from 933.1 billion won to about 2.13 trillion won last year and operating profit increasing to 315.5 billion won. Market estimates now place SK Siltron’s enterprise value at around 5 trillion won.
At that valuation, the sale could generate more than 3 trillion won in cash for SK Inc., following its earlier divestment of SK Specialties for about 2.6 trillion won. Combined, the two transactions would secure roughly 6 trillion won in liquidity, easing pressure on the group’s balance sheet amid weaker conditions in parts of the semiconductor cycle.
However, analysts note that chip demand remains sensitive to chip market fluctuations, raising questions over whether current valuations fully reflect medium-term risks.
Strategic Fit for Doosan Comes With Execution Risk
For Doosan, the acquisition would significantly expand its semiconductor portfolio. The group already operates in the sector through Doosan Corporation’s Electronics BG, which produces copper-clad laminates for semiconductor substrates, and Doosan Tesna, a non-memory semiconductor testing company acquired in 2022.
Adding SK Siltron would give Doosan exposure to upstream chip manufacturing, creating coverage across a larger portion of the semiconductor value chain. Industry sources say this could improve negotiating leverage and internal coordination. At the same time, integrating a capital-intensive chip business into a group historically focused on heavy equipment and energy presents execution and cost-management challenges.
Labor and Integration Add Uncertainty
Beyond financial considerations, labor relations have emerged as a potential risk. SK Siltron’s union has protested the sale process, warning that the deal affects the livelihoods of around 3,600 employees. While workers are reportedly more receptive to Doosan than to a private equity buyer, the union has demanded clearer assurances on job security.
Integration risk is also in focus. Aligning SK Siltron’s operations, customer base, and capital investment plans with Doosan’s existing semiconductor units will be complex, particularly as chip manufacturing requires sustained investment through industry cycles.
What Comes Next
Following Doosan’s selection as preferred bidder, both sides are expected to move into detailed due diligence and contract negotiations. A person familiar with the talks said the aim is to finalize a stock purchase agreement by early next year, although SK Inc. said final terms will be determined through negotiations.
Whether the deal proceeds on schedule may depend not only on price, but also on how Doosan addresses labor concerns and integration planning—factors that could ultimately shape the transaction’s long-term value.
