SKC commences BM innovation #2 including 100% incorporation of SKC solmics

• Tender offer for 42.2% of SKC solmics equity and comprehensive stock swap ∙∙∙ 100% incorporation of it as a subsidiary

• Getting a jump-start on semiconductor materials/parts centered around SKC solmics ∙∙∙giving a signal for business model (BM) innovation

SKC (President Lee Wan-jae) is securing the entire equity of SKC solmics, one of its subsidiaries, specializing in semiconductor equipment/parts, through a tender offer of stocks and a comprehensive stock swap. Then, it will take steps for business model (BM) innovation Phase-2, including getting a jump-start on semiconductor materials/parts centered around SKC solmics.

At a session of its Board of Directors, held on August 12, SKC decided to completely incorporate SKC solmics by securing 42.2% (25,972,532 shares) of the latter’s equity through a tender offer and a comprehensive stock swap. The Company will carry out the said tender offer between August 13 and September 2, following the necessary procedures, including public notice. The price for the tender offer will be calculated in consideration of the premium. Stocks not participating in the tender offer will be swapped with SKC’s stocks at a rate of 14.52 SKC solmics’ shares per one SKC share.

SKC’s decision is to have its semiconductor materials/parts sector grow in earnest. SKC solmics’ main line of business is through its semiconductor parts, made of silicon, quartz, alumina, and silicon carbide. Recently, it has expanded its territory to semiconductor parts/equipment cleaning. SKC solmics plans to build a cleaning factory in Uxi, China within this year, and to commercialize it next year.

SKC’s incorporation of SKC solmics is also part of its BM innovation Phase-2. The Company has pushed forward with BM innovation for years, and completed Phase-1 by launching SK Nexilis, which ranks No.1 in terms of the technology for the production of copper foil, which is a core material for EV batteries. In BM innovation Phase-2, SKC plans to focus on semiconductor and eco-friendly materials, which it has selected as a future growth engine.

SKC has steadily expanded its semiconductor materials sector. It has secured its own technology for a high-end blank mask, and has completed a factory in Cheonan, last year. It aims to finish customer business authentication of the technology within this year and commercialize it as soon as possible. In addition, it has become the world’s second business to secure the technology for the production of the CMP Pad, applicable to the entire memory semiconductor production process, and is building a second CMP Pad factory in Cheonan.

Commenting on the matter, an SKC official said, “The stated decision is associated with the plan for the promotion of BM innovation Phase-2, announced within five months of the announcement of the completion of Phase-1, focusing on mobility materials, in March of this year. It is an indication that we will strengthen the semiconductor business in earnest after the mobility material business.”

[A photo of SKC solmics’ headquarters in Pyeongtaek, Gyeonggi-do. SKC decided to incorporate it wholly, using methods of a tender offer and a comprehensive stock swap.]