This article was published on Dec. 23, 2024, at 10:45 a.m. on the Chosun Biz Money Move (MM) site.
KOSDAQ-listed corporation Kemtronics will acquire J3, a domestic manufacturer of wafers for non-memory semiconductors, through a newly established subsidiary this year. Kemtronics has successfully localized essential materials used in the production of system semiconductors and is currently driving the growth of its semiconductor material business while expanding its value chain.
On the 23rd, according to investment banking (IB) industry sources, Kemtronics' subsidiary Regenix signed a contract for the acquisition of management rights in J3. This transaction is reported to have been implemented through a third-party allocation of new shares rather than an existing shareholder's sale of shares. Regenix is a new corporation established by Kemtronics in September to engage in semiconductor material manufacturing and sales, with founder Kim Bo-kyun serving as CEO.
The amount invested by Kemtronics in J3 is confirmed to be approximately 22 billion won. Regenix is reportedly receiving a loan of 15 billion won from Shinhan Bank to finance the acquisition of J3. To secure this, Kemtronics provided a debt guarantee of 18 billion won for Regenix. Samil Accounting Corporation is the underwriter for J3's sale, and it is said that related procedures such as the issuance of new shares and changes to the articles of association have recently been concluded.
J3 is a leading company in the domestic wafer sector. Semiconductor wafers are basic plates used in the process of forming semiconductor chips. J3 possesses technology to regenerate waste wafers into new wafers. This technology has gained attention for its potential to reduce costs by recycling expensive wafers and minimize waste output, addressing environmental issues. Major clients such as Samsung Electronics and SK Hynix primarily utilize regenerated wafers, with J3's main customers being their primary vendors.
J3 has gained recognition by attracting funds from multiple financial investors (FIs). Major investors include domestic private equity fund (PEF) management firms Q Capital Partners and JB Asset Management, the venture capital firm Lindemann Asia Investment, CKD Startup Investment, BS Investment Partners, TS Investment, KB Securities, and Yuanta Investment. In the pre-IPO investment round, Stonebridge Capital, AIP Asset Management, AIP Venture Partners, KB Securities, and Korea Development Bank Capital also participated.
Kemtronics accelerated its next-generation semiconductor material business by executing nearly 120 billion won in investments just last year. This year, it entered into a technical agreement with Samsung Electro-Mechanics to commercialize glass substrates and initiated additional investments in semiconductor-grade product synthesis and refining facilities, starting with supplementary investments related to semiconductor packaging organic light-emitting diode (OLED) etching facilities. Recently, it has strengthened its semiconductor material business with the launch of a new brand while undergoing quality certification procedures (PCN) to supply the key raw material, 5N PGMEA, to global semiconductor manufacturers.