● Deal thought to be worth 100 billion won

● Soulbrain to gain Samsung as DRAM(Dynamic Random Access Memory) precursor customer through deal

Chip and electronics material company Soulbrain is planning to acquire precursor maker DNF, PCB UNION has learned.

The deal is expected to close within the year and is reportedly worth around 100 billion won, sources said.

Soulbrain Holdings, the holding company of the Soulbrain group, will be the acquirer and Nau IB Capital is underwriting the deal.

Those from Soulbrain visited DNF earlier this week in preparation of the deal and researchers from both parties have already met, the sources said.

Soulbrain also received the permission for the deal from Samsung Electronics, which is the second largest shareholder of DNF and a customer of its precursors, they added.

DNF is one of the two major precursor makers, the other being Duksan Techopia, in South Korea.

DNF was founded by CEO Kim Myung-woon in 2001 and developed the precursor for aluminum chemical vapor deposition within Samsung in 2005, entering the precursor market for chip production.

It later developed an amorphous carbon layer precursor and double patterning technology precursor as well.    Along with Japanese company Adeka, it as major supplier for DRAM precursors to Samsung.

Samsung made an equity investment of 21 billion won in DNF in 20021, acquiring a 7% stake, becoming the second largest shareholder after CEO Kim who holds 16.35%.

Soulbrain will acquire a 19.7% stake in DNF, which is owned by CEO Kim and his associates, in the deal, the sources said.

DNF subsidiaries Chemoptics and DNF Advanced Materials won’t be included in the deal and Soulbrain is only seeking precursors businesses and assets.

The move by Soulbrain aims to diversify its portfolio.Soulbrain offers etching and cleaning materials such as HSN, HF, and BOE when it comes to chip production.

DNF’s main product is the precursor for DPT, which it started production 2012.    Doubling patterning technology is used to protect the wafer during the double patterning process.DNF is also developing a DRAM precursor in the hafnium family, which Adeka already provides to Samsung.DNF is also developing a photoresist.

Soulbrain Chairman Jung Chi-wan, in a recent executive meeting, told the meeting that the company needs to diversify its portfolio to strengthen its competence in the semiconductor sector at that the purchase of DNF will allow this.

Meanwhile, DNF had also offered itself to Hansol Group earlier but Soulbrain’s offer was considerably more attractive, the sources also said.

About Soulbrain

With the aims of localizing advanced technologies and globalizing our technology, Soulbrain has been developing, manufacturing and supplying high tech industry core materials for over 35 years since our foundation.   Since Korea began focusing on industries such as semiconductor, display and secondary battery cells, Soulbrain has advanced in parallel with our customers based on deep-rooted and sustained trust.

Soulbrain specializes in core materials for the high tech industry, and works hard to provide higher added value and satisfaction to customers.   Soulbrain continuously strive to generate products and services in new and emerging areas through application of new technology and past experience.  The company always work to maximize their contribution to customers’ profitable growth and development by providing them with technologically differentiated and diverse products and solutions in a timely fashion.

In addition, as a corporate citizen, Soulbrain aims to take full responsibility for local communities and environmental protection, to help achieve sustainable growth and prosperity for people, communities, and companies.

About DNF

DNF is a company that specializes in CVD/ALD precursors for semiconductor circuits. It has established itself as a pioneer in the semiconductor miniaturization core material industry and is developing core materials for next-generation semiconductor processes based on its unrivaled technological competitiveness and strategic investment in R&D.

In addition, DNF is laying the foundation for sustainable growth by establishing a cooperative system for the development of new materials with manufacturers of display panels and equipment.

The company has diversified its business into the 5G field by acquiring Chemoptics, an optical communication component company, in 2020. DNF is now striving hard to become a proud company that competes with world-class companies, a respectful company that presents more convenience for humans, and the 'Global No.1 Leading Company for Electronic Materials'.