On April 9, 2025, industry sources revealed that SK Group's holding company, SK Co., Ltd., is currently in negotiations with private equity firm Hahn & Company regarding the potential sale of its controlling stake in SK Siltron, a key player in the semiconductor wafer manufacturing sector. This move is part of a broader strategy of portfolio rebalancing within SK Group.
The stake under consideration for sale includes a 51% share directly held by SK Co., Ltd. and an additional 19.6% stake held through a Total Return Swap (TRS) agreement, bringing the total to 70.6%. Notably, the 29.4% stake owned by Chairman Chey Tae-won is excluded from this transaction.
SK Siltron stands out as South Korea's only specialized manufacturer of semiconductor wafers, essential materials for semiconductor chips. It ranks third globally in market share for 12-inch wafers, highlighting its significant role in the industry. The company was acquired from LG Group in 2017, when SK Co., Ltd. purchased a 51% stake along with a 19.6% stake from financial investors for approximately 790 billion won.
The market value of SK Siltron is estimated to be around 5 trillion won. If the sale proceeds successfully, SK Co., Ltd. is projected to secure approximately 3 trillion won in cash, which would provide a substantial boost to its financial standing.
Analysts suggest that the sale of SK Siltron could lead to a significant shift in SK Group's vertical integration strategy within the semiconductor sector. This strategy, which began in 2015 with the acquisition of SK Materials (now OCI Materials), aimed to consolidate semiconductor materials and components under the SK Co., Ltd. umbrella. The intent was to leverage the growth of SK Hynix, a prominent semiconductor manufacturer, to enhance the overall value of the holding company.
As part of its ongoing restructuring efforts, SK Group has been exploring various options, including the sale of SK Siltron. This move could streamline its operations and alleviate financial burdens associated with its current debt levels. Recent reports indicate that SK Group has already secured about 2.63 trillion won from the sale of SK Specialty on April 2, 2025, bringing its total cash reserves from these transactions to over 6 trillion won.
Furthermore, SK Co., Ltd.'s net debt, which stood at 10.526 trillion won at the end of the previous year, is expected to drop below 5 trillion won. This marks the first time in nearly eight years that the company's net debt has fallen below the 10 trillion won threshold. Such a reduction is anticipated to support SK Group's goal of lowering its debt ratio, which was reported at 145% in 2023, to below 100%.
Despite the ongoing discussions and the potential implications of the sale, SK Co., Ltd. has officially stated, "We are reviewing various strategic options, including the sale of shares in SK Siltron, but there are no concretely confirmed matters to date." This statement underscores the uncertainty surrounding the negotiations and the future direction of SK Group's semiconductor strategy.
The outcome of these negotiations could have far-reaching effects on SK Group's operational strategy and its position in the semiconductor market. As the global demand for semiconductors continues to rise, the decisions made by SK Group regarding SK Siltron will be closely watched by industry analysts and competitors alike.
In conclusion, the potential sale of SK Siltron represents a pivotal moment for SK Group as it navigates the complexities of the semiconductor landscape. With significant financial implications and strategic considerations at play, the coming months will be crucial in determining the future of both SK Siltron and SK Group's broader ambitions in the semiconductor sector.
