Shin-Etsu Chemical spends $431 million to acquire all shares of Mimasu Semiconductor

Japan's Shin-Etsu Chemical will acquire all shares of Mimasu Semiconductor Industry for $430.9 million, increasing its stake from the current 43.87% to 100%. Bidding began on June 21 and the acquisition is expected to be completed before August 5.

Mimasu Semiconductor's business includes the semiconductor department, which provides silicon wafer processing services; the industrial sales department, which sells measuring instruments, test machines, other precision equipment and other products produced by the engineering department; and the engineering department, which manufactures semiconductor-related automation equipment.

Shin-Etsu Chemical said that Mimasu's semiconductor business, industrial sales business and engineering business can all make significant contributions to the growth of its electronic materials business.

Shin-Etsu Chemical expects that in the medium and long term, the semiconductor industry's demand for processing devices will increase significantly, but in the short term, the semiconductor industry will face severe changes such as excess inventory and rising raw material costs. "For these reasons, Shin-Etsu Chemical recognizes that it is time for Samick Semiconductor to undergo a transformation to conduct higher-level technological research and stabilize its supply chain."

Shin-Etsu Chemical intends to maintain Samick Semiconductor's existing supply, sales chain and business partner structure for the time being without adjustments.

The company also said that the transaction will expand its product line to meet demand for a variety of wafer products and reduce Samick Semiconductor's investment costs. The transaction will also utilize Shin-Etsu Group's wafer recycling technology to expand sales channels for spin processors and improve risk allocation for natural disasters.