This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:42 p.m. on Jan. 29, 2026.
Large corporations and private equity fund (PEF) managers alike are scrambling to acquire semiconductor corporations. With an AI-driven semiconductor supercycle expected over the next two to three years, those without semiconductor corporations are even feeling FOMO (fear of missing out).
According to the investment banking (IB) industry on the 29th, a PEF manager recently prepared to acquire a semiconductor materials corporation, but the deal fell through. They even lined up a strategic investor (SI) and worked on it for more than a year, but the seller withdrew the intention to sell at the final stage of talks.
The reason capital-market heavyweights such as large corporations and PEF managers are searching for semiconductor corporation targets is the expectation of a semiconductor supercycle. With demand for AI servers rising, demand for high-performance memory semiconductors is surging, and the dominant view is that earnings improvement will continue for the next two to three years.
Memory semiconductors are not only core components of electronic devices such as smartphones and laptops/PCs, but also essential elements of AI data centers and servers. Kim Dong-Won, head of research at KB Securities, said, "Starting this year, memory semiconductors are rapidly emerging as a strategic asset for big tech firms to secure AI leadership and are expected to be re-evaluated."
Sales-side players are also optimistic about the semiconductor cycle, so few mergers and acquisitions (M&A) are being completed. A source in the IB industry said, "Control of semiconductor corporations is practically name-your-price, with a seller's market in place," and noted, "EBITDA multiples seem to be about 20% higher than in the past." Another source explained, "Valuations are around 40 times price-earnings ratio (PER)."
PEF managers that succeeded in acquiring semiconductor corporations last year include JKL Partners and NAU IB Capital. JKL Partners acquired Reon, a semiconductor process consumables corporation, for 180 billion won in Nov. last year, and NAU IB Capital acquired the Japanese semiconductor corporation Senprosys for 255 billion won in Apr. the same year.
Among large corporations, Doosan and Hanwha are active. The move is seen as a strategy to strengthen the semiconductor value chain and boost business competitiveness. Doosan Group is pushing to acquire SK Siltron, a semiconductor wafer manufacturer, and Hanwha Group is reportedly searching for semiconductor materials, components, and equipment assets through Hanwha Vision.
Some warn of overheating. If the cycle turns after a high-priced acquisition, investors may not recoup full value when exiting. Another IB industry source said, "Even if earnings improve in this cycle, you have to sell it back in four to five years after the acquisition, and considering that, it's hard to pay the full premium."