Expected synergy effect with SK affiliates
Yes Power Technics, an affiliate of Yesty, a semiconductor display equipment company, has attracted an investment of 26.8 billion won from SK, a holding company specializing in investments in the SK Group. SK Corp. announced on the 28th that this investment will secure a 33.6% stake. He added that new opportunities can be found in the field of silicon carbide (SiC) power semiconductors.
SiC has higher power conversion efficiency than conventional silicon (Si). It maintains over 98% power conversion efficiency even in high temperature and high voltage environments. Previously, Si-based IGBTs were mainly used. If a SiC MOSFET with high power conversion efficiency is mounted, the fuel efficiency of an electric vehicle can be greatly improved. In 2018, SiC power semiconductors were first mass-produced to Tesla Model 3, the world’s largest electric vehicle maker. Since then, demand has been increasing rapidly. However, the supply shortage continues globally due to high technical barriers and not many companies with mass production capabilities. German Infineon, European ST Micro, US Cree and Japanese Rohm dominate the market.
Yes Power Technics is the only company in Korea that has silicon carbide (SiC) power semiconductor design and production technology. It has R&D experts with more than 10 years of experience in developing SiC power semiconductors. There are also 23 patents. It is the only domestic company to establish a SiC power semiconductor production system, such as a production line applied with a high-temperature process. It has a SiC power semiconductor production line in Pohang with a capacity of up to 14,400 sheets per year, equivalent to about 140,000 electric vehicles based on a mixed production of 100mm and 150mm.
Kim Do-ha, CEO of Yes Power Technics, said, “We are looking forward to a great synergy with this investment in the future,” and said, “As before, Yes Power Technics’ earnings will be captured by Yesty’s equity method gains and losses.”
According to the quarterly report at the end of the third quarter of last year, Yesty owns a 29% stake in Yes Power Technics. CEO Jang Dong-bok, the largest shareholder of Yesty, owns about 35% of Yes Power Technics. Even if some of the shares are diluted with this investment in SK, CEO Jang and Yesty’s share of Yes Power Technics is more than 50%. This means that Yesty Group will take over the fruits of its management rights and business results.
CEO Kim explained, “The investments raised this time will be used to increase production capacity such as the introduction of ion implantation and layer annealing equipment, and will also be used as R&D funds for new process development.” SK Co., Ltd. said, “We plan to reinforce the unique competitiveness of Yes Power Technics by supporting R&D and investing in facility expansion, while also implementing a plan to create synergy with the group’s semiconductor (SK Hynix) and wafer (SK Siltron) businesses.
An industry expert explained, “We are expecting synergies in the SiC power semiconductor foundry business with SK Hynix and the procurement of SiC wafers with SK Siltron.” In March last year, SK Siltron acquired the SiC wafer business from DuPont in the United States for $ 450 million (about 540 billion won).
According to IHS Markit, thanks to the explosive growth of the electric vehicle market, SiC power semiconductors are expected to grow at an annual average rate of 32% from about $700 million in 2020 to about $10 billion in 2030.
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