News

• SKC Announces Q3 Earnings: “Sustained Recovery, Visible Progress in New Businesses” ●EV battery materials: North America sales expand; Malaysia plant sales increase, boosting profitability●Test socket/equipment merger synergies materialize; glass substrate samples enter customer qualification process●Bolsters financial health via increased cash inflows; aims for an efficient capital structure centered on core businessesSKC announced on November 5 that it recorded consolidated revenue of KRW 506 billion and an operating loss of KRW 52.8 billion for the third quarter of 2025. Compared to the previous quarter, sales rose by 9 percent, while the operating loss improved by KRW 17.5 billion. The Company surpassed the 500-billion-KRW quarterly sales mark for the first time in two years, continuing a clear trend of sales growth and improved profitability.By business segment, the EV battery materials division posted sales of KRW 166.7 billion and an operating loss of KRW 35.0 billion. Sales to North America expanded significantly, resulting in a 31 percent quarter-over-quarter increase in revenue. In particular, sales of copper foil for LFP-based energy storage systems (ESS) applications grew sharply, driving overall sales growth. The Malaysian plant also steadily increased sales volume, contributing to improved profitability.The semiconductor materials business recorded KRW 64.5 billion in sales and operating profit of KRW 17.4 billion. Synergies from the merger of the test socket and equipment businesses began to materialize in earnest, driving the division to its highest-ever quarterly revenue. In particular, the test socket business achieved a quarterly operating margin of 33 percent, supported by strong sales of high value-added products for AI-driven non-memory applications.SKC's glass substrate business, which the Company aims to commercialize as a world first, has commenced the customer qualification process following the production of its first mass-production prototype samples at the Georgia plant. The prototypes achieved positive results in simulation tests, putting commercialization on track for next year.The chemical business posted sales of KRW 273.5 billion and an operating loss of KRW 7.4 billion. Backed by stable demand, the division maintained steady sales, while the operating loss narrowed significantly from the previous quarter due to stabilization in raw material costs. In the fourth quarter, demand for PG is expected to rise due to seasonal factors, and the Company plans to continue its cost-optimization efforts.Financial performance also showed notable progress. The Company significantly increased cash inflows through the issuance of perpetual bonds exchangeable into shares (EBs) and the sale of non-core semiconductor businesses, thereby accelerating efforts to strengthen its financial health. SKC plans to complete its rebalancing initiatives by year-end and establish an efficient capital structure centered on its core businesses.An SKC official said, “We are focusing on strengthening the competitiveness of each business and establishing a profitability-centered growth model”, adding, “Alongside continued efforts to generate results from new businesses such as glass substrates, we will also focus our efforts on strengthening medium- to long-term financial stability.” [End]
• SKC to Merge with SK enpulse, Restructuring Toward a High-Value Semiconductor Back-End Business ● Merger targeted for completion within the year; expanding investments in advanced materials and testing solutions for high-value semiconductor back-end processes​● ​Approximately KRW 380 billion in cash and other assets from SK enpulse to be transferred to SKC, bolstering the company’s financial positionSKC Co., Ltd. (CEO Woncheol Park) announced that it will merge with SK enpulse, a semiconductor materials company in which it has invested, as part of its ongoing portfolio rebalancing strategy.The decision was approved at a board meeting held on October 14, and SKC aims to complete all merger procedures within this year.Through this merger, SKC will secure approximately KRW 380 billion in funds, including SK enpulse’s cash holdings and proceeds from recent business divestitures. The funds will be used to invest in high-value semiconductor back-end packaging and advanced materials businesses—including the commercialization of glass substrates—as well as to reduce debt and strengthen the company’s financial position.Since 2023, SKC has been actively promoting the rebalancing of its semiconductor materials business as part of its mid- to long-term portfolio restructuring strategy. The company has divested SK enpulse’s fine ceramics, wet chemical and cleaning, CMP pad, and blank mask businesses, while spinning off the back-end equipment division into a new company, I-Semi, and transferring it to ISC.As a result, SKC’s semiconductor materials portfolio is now centered on ISC’s test sockets and equipment, and the glass substrate business of Absolix (currently being commercialized in Georgia, USA). Building on these two pillars, SKC plans to enhance its competitiveness in high-value back-end processes and expand its presence in advanced semiconductor materials.An SKC official stated, “The divestiture of SK enpulse’s non-core businesses and the merger complete our transition toward a high-value, back-end-focused portfolio while also reinforcing our financial stability. We will leverage the secured funds to create new growth opportunities in the semiconductor back-end field.”