Samsung Electro-Mechanics will sell its wireless charging module business to a midsized company in Korea.
According to the industry on the 9th, Samsung Electro-Mechanics has decided to sell its wireless charging module business to Chemtronics, a manufacturer of electronic parts and chemicals. The company was reportedly selected to be a primary party for negotiation and the process of conducting due diligence is underway.
This acquisition is expected to cost tens of billions of won. Samsung Electro-Mechanics plans to transfer the goodwill and production facilities that supply wireless charging modules to Samsung Electronics' Galaxy smartphones. It is reported that dozens of people are working at the Samsung Electro-Mechanics' wireless charging module business unit. After the sale, it is said that the final stage of discussions has been reached regarding staff turnover.
Samsung Electro-Mechanics' sale of wireless charging module business is to increase the efficiency of company management. The module solution division, which includes the wireless charging module business, posted an operating margin of only 2% last year. The 2016 and 2017 operating margins were merely 1.2% and 2.8%, respectively. Samsung Electro-Mechanics said in its annual report in 2018, "The module business structure will be reorganized to be centered on high-value modules and will secure business leadership in the expanding multi-camera market through technology differentiation based on core components including lenses and actuators."
Chemtronics can expect synergy when the deal is concluded. The electronic business unit's wireless charging section of Chemtronics has developed and produced wireless charging modules for smartphones and electronic equipment. The company's products have already been installed in the Samsung Galaxy S and Galaxy Note series. The company also supplied wireless charging products to automobile companies such as Renault Samsung, Ssangyong, and General Motors.
Chemtronics, which consists of electronic and chemical business, recorded sales of 337.7 billion won and an operating profit of 9 billion won last year.
Meanwhile, the company that competed with Chemtronics for the acquisition of the Samsung Electro-Mechanics wireless charging module business is said to be the Exicon Group, a semiconductor testing equipment specialist. Choi Myung-Bae, Chairman of Exicon, is the majority shareholder of Semtech that has YIK Corp. as a subsidiary. YIK Corp. has taken over the semiconductor parts test material business from Samsung Electro-Mechanics in 2016. However, for this deal, Chemtronics was selected as the priority negotiation subject.
The division of Samsung Electro-Mechanics has continued steadily since the early 2000s. Starting with Bixolon (printer parts, 2002), Samsung Electro-Mechanics has divided the company individually into Patron (electronic device, 2003), S-Mac (touch screen, 2004), Nanos (Optical filter, 2005), IM (Optical pickup, 2006), Wisol (Surface acoustic wave filter, 2008), and SOLU-M (power tuner · electronic price indicator (ESL), 2015).
An official of Samsung Electro-Mechanics said, "We are considering various aspects to enhance our business competitiveness, but nothing has been decided yet."