This article was published on May 12, 2026 at 16:24 on Signal, the capital markets compass.
SK Group CI. SK Group
SK Siltron, which SK Group is seeking to sell, recognized approximately 400 billion won in impairment losses related to its silicon carbide (SiC) business last year. Silicon carbide is considered a next-generation semiconductor material due to its superior ability to withstand high voltage and high temperatures, but losses are mounting as commercialization has been limited to electric vehicles and other select applications. On top of this, borrowings exceeding 1 trillion won that must be immediately repaid upon a change of control under special covenants are prolonging negotiations with preferred bidder Doosan Corp.
According to the investment banking industry and the Data Analysis, Retrieval and Transfer System on Monday, SK Siltron recognized 414.1 billion won in impairment losses related to its silicon carbide business last year. Impairment loss is an accounting concept that reflects losses when the actual value of assets such as goodwill, buildings and facilities held by a company falls below their book value and recovery becomes difficult. SK Siltron wrote down the silicon carbide goodwill, originally valued at 334.4 billion won, to “zero,” and also significantly reduced the value of tangible, intangible and right-of-use assets.
Silicon carbide is a compound composed of silicon (Si) and carbon (C), regarded as a next-generation semiconductor wafer material. It maintains performance at higher temperatures and voltages than conventional silicon semiconductors, making it primarily used as a material for automotive power semiconductors. However, it is more than five times more expensive than silicon semiconductors and has higher defect rates as it moves into finer processes, limiting its use in general-purpose semiconductors such as DRAM. SK Siltron acquired the silicon carbide wafer business from U.S.-based DuPont for $450 million (approximately 668.6 billion won) in 2020.
Losses related to silicon carbide continue to accumulate. SK Siltron posted operating profit of 193.1 billion won last year, earning 407.6 billion won from its silicon wafer business while recording a loss of 214.5 billion won in the silicon carbide business. Losses in the silicon carbide division cut overall operating profit roughly in half. The electric vehicle chasm, or demand slump, has been cited as the cause of weak performance. Tesla, the end customer for SK Siltron’s silicon carbide products, is struggling in competition with Chinese companies such as BYD amid slowing growth in the electric vehicle market.
SK Siltron is the only company in Korea producing semiconductor wafers. It forms an oligopoly controlling roughly 90% of the global wafer market along with Japan’s Shin-Etsu and SUMCO, Germany’s Siltronic and Taiwan’s GlobalWafers. In 12-inch (300mm) wafers, it ranks third globally, consistently posting sales above 2 trillion won, including 2.0256 trillion won in 2023, 2.1268 trillion won in 2024 and 2.0575 trillion won in 2025. Last year’s earnings before interest, taxes, depreciation and amortization (EBITDA) reached 459.3 billion won, with total assets of 5.5948 trillion won.
The problem is debt. According to NICE Investors Service, approximately 1.2 trillion won of SK Siltron’s 2.7169 trillion won in total borrowings is debt that could trigger an event of default (EOD) if ownership changes through a sale of management rights. Since banks and creditors lend based on the likelihood of parent company support, they often include special covenants requiring immediate repayment when ownership changes. SK Siltron may refinance covenant-bound corporate bonds through new borrowings and pursue waivers for bank loans.
SK Group has been pursuing the sale of SK Siltron since last year as part of asset rebalancing. It selected Doosan Corp. as the preferred bidder in December last year, but the signing of a definitive agreement has been repeatedly delayed. The sale target is the 70.6% stake held by SK Inc., excluding the remaining 29.4% owned by Chairman Tae-won Choi. Enterprise value is being discussed at over 4 trillion won. Doosan holds 1.2151 trillion won in cash and cash equivalents, making borrowing through acquisition financing inevitable for a solo purchase.
“Doosan is trying to lower the acquisition price based on accumulated losses in new businesses and contingent liabilities, while SK may seek a ‘fair price’ considering the growth of the semiconductor market,” an investment banking industry source said. “Since SK Siltron’s silicon wafer business performance is solid, valuation will ultimately be the key issue.”