Chemtronics subsidiary Witz, invested 91.5 billion won in Samsung Electro-Mechanics’ Thailand subsidiary
Chemtronics, an electronic component maker, officially announced the acquisition of the wireless communication module business of Samsung Electro-Mechanics.
On the 27th, Chemtronics announced that its subsidiary Witz signed a business and stock transfer agreement to acquire Samsung Electro-Mechanics’ Wi-Fi communication module business for 105.5 billion won. Chemtronics said, “We will strengthen our position as a short-range wireless communication solution company through the acquisition of Samsung Electric’s Wi-Fi communication module business.”
Witz will invest 91.5 billion won in Samsung Electro-Mechanics’ Thailand subsidiary, which makes communication modules. After the investment, the stake becomes 100%. Chemtronics decided to borrow 8.3 billion won to Witz. This is to secure funding for Witz’s acquisition of the Samsung Electro-Mechanics’ Wi-Fi communication module business.
This magazine is on December 8 last year (Chemtronics acquired Samsung Electro-Mechanics’ wireless communication module business) It is reported that Chemtronics will take over the wireless communication module business from Samsung Electro-Mechanics.
Chemtronics is known to expect a double-digit operating margin in the wireless communication module business. Since the fixed cost burden is less than that of Samsung Electro-Mechanics, the profit margin can be increased. From the perspective of Samsung Electro-Mechanics, it was found that it was difficult to raise profits in the wireless communication module business because Samsung Electronics directly designates related chips.
Earlier, Chemtronics acquired the wireless charging module business from Samsung Electro-Mechanics for 21 billion won in 2019. Since Chemtronics acquired the wireless charging module business from Samsung Electro-Mechanics, the industry has seen that it is not easy for the same company to acquire the wireless communication module business. However, it is known that Samsung Electro-Mechanics President Gye-Hyun Kyu-hyun gave a generous score to Chemtronics because he judged that Chemtronics’ autonomous driving business had a great synergy effect with wireless communication modules.
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