Over half a billion dollars SK Group takes control of a manufacturer of silicon wafers from LG Siltron
As you know, the demand for silicon wafers used for the production of chips exceeds the supply, with the result that prices are rising. Probably, the desire to provide a reliable source of plates led to the purchase of a controlling stake in LG Siltron, which produces silicon wafers, the company SK Group. Part of SK Group is SK Hynix is the second largest manufacturer of memory chips, behind only Samsung. To get a controlling stake, SK Group took about 531 million dollars.
Vertical integration, along with enlargement, is a powerful mechanism for improving sustainability in the market. This is evidenced by the example of Samsung. As can be seen from its recent report, the failure of the mobile unit with the smartphone Galaxy Note7 could not spoil the company’s financial performance, since it compensated for the success of other units, in particular, producing memory chips and displays.
Sources: SK Group, CDR info