Hanwha Solutions is considering to acquire Samsung Electro-Mechanics' Wi-Fi module business.
On the 25 th, several industry insiders said, “Hanwha Solutions is looking for a plan to acquire Samsung Electro-Mechanics’ Wi-Fi module business, and the negotiation is in process.”
In January, Samsung Electro-Mechanics signed a contract to sell the Wi-Fi module business to Wits, a subsidiary of CHEMTRONICS, for 105.5 billion won. However, in May, Wits canceled the contract and the sale was call off. Wits stated that rapid changes in the Wi-Fi module business market and possibilities of a consequent deterioration in profitability as the reasons for the withdrawal.
After the contract fell through, Samsung Electro-Mechanics began to resell its business. This is to rearrange the business structure around high value products such as semiconductor substrates and multilayer ceramic capacitors (MLCCs). Samsung Electro-Mechanics came into contact with Hanwha Solutions while looking for candidates. It is known that discussions between the two companies began as Hanwha Solutions pushed for strengthening its advanced materials business and discovering new businesses.
This year, Hanwha Solutions recruited several executives from Samsung Electronics' wireless division, including President Jung-wook Hwang. President Hwang served as vice president of the wireless division in charge of Samsung's smartphone business. Vice President Se-young Chung and Managing Director Kyung-ha Koo also joined Hanwha Solutions from Samsung's wireless division. It is assumed that Hanwha Solutions has shown interest in Samsung Electro-Mechanics' Wi-Fi business in terms of synergy with the materials business and discovering new businesses since smartphones are agglomerations of advanced materials, and Wi-Fi modules that enable wireless LAN communication are essential to information and communication devices such as smartphones, TVs, and AI speakers.
It is unsure whether the contract between the two companies will be finalized. There have been many contracts that fell through due to rapid market changes. Discussions between Hanwha Solutions and Samsung Electro-Mechanics are in the early stages. However, Hanwha Solutions recently acquired a fine metal mask (FMM) company, a key component for organic light emitting diode (OLED) manufacturing. The possibility of signing a contract cannot be ruled out as Hanwha Group has shown a strong will to expand the electronics business, such as considering entering the semiconductor equipment business.
An official from Hanwha Solutions said, “The acquisition of Samsung Electro-Mechanics’ Wi-Fi business is one of several options for a new business. Nothing has been decided at this moment.”
By Staff Reporters Gun-il Yun and Tae-woong Ryu (benyun@etnews.com) and (bigheroryu@etnews.com)