South Korea’s leading wafer producer SK Siltron, a former LG unit that came under SK umbrella recently, reported 27.4 billion won ($24 million) in net income during the first half of this year, near five-fold from last year’s figure of 6 billion won.
SK Group’s purchase of 51 percent stake from LG Group in the wafer maker at 620 billion won early this year for synergy with chipmaking SK Hynix proved to be a jackpot as it was timed with extraordinary boom in semiconductors. The company had been in red since 2013 and squeezed out a small profit last year.
According to SK Siltron on Friday, the company generated 27.4 billion won in net income and 437 billion won in sales in the first half ended June. Profit far outperformed sales growth of 7.4 percent as wafer prices jumped along with chip demand.
Wafer substrate price gained 15 percent to 20 percent from December.
SK Siltron, the world’s fifth largest wafer producer, supplies to SK Hynix, which performed its best-ever in the first half. The company is expected to do better in the second half once acquisition process is completed.
Given the global demand trend, wafer selling prices will stay strong next year. Its bottom line will improve through closer ties with SK Hynix, analysts said.
By Hwang Hyung-gyu
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]