Seoul: A South Korean company has acquired a Taiwan-based semiconductor parts manufacturer, the industry ministry said Thursday, amid Seoul's efforts to strengthen the country's supply chain in the semiconductor sector.
According to Yonhap News Agency, FSN Tech Co. has taken over Asahi Lamp, a company that manufactures halogen lamps used in rapid thermal processing and epitaxial layer formation in semiconductors, in a deal worth 10.8 billion won (US$7.7 million). The acquisition aims to stabilize supply chains for domestic chip manufacturers and boost technological competitiveness.
The Taiwanese company supplies halogen lamps to global tech giants like Applied Materials and TSMC. Currently, South Korea has no domestic production base for halogen lamps, entirely relying on imports.
Na Sung-hwa, director general for industrial supply chain policy at the ministry, noted that mergers and acquisitions of foreign firms allow domestic companies to secure new technologies and markets simultaneously. The ministry has called on Korean companies to actively utilize the government support program to acquire foreign technologies.
The Seoul government is seeking to extend tax credits of up to 10 percent of acquisition costs for overseas corporate takeovers related to materials, parts, and equipment for key industries through 2028.
In 2013, FSN Tech also acquired InnoPad, a U.S.-based company that designs chemical mechanical planarization pads for the chip manufacturing industry with government support.