Jusung Engineering to spin off chip, solar and display units
Korea's Jusung Engineering has revealed a plan to re-organise its corporate structure to 'avoid undermining shareholder value'.
The equipment manufacturer says its will spin-off its semiconductor, solar, and display divisions into new entities. The semiconductor business will focus exclusively on technology development and manufacturing, and will keep the name Jusung Engineering.
Meanwhile the display and solar operations will become a wholly owned subsidiary, tentatively named Jusung SD. The overall corporation will be renamed either Jusung or Jusung Holdings, and will continue to be listed on the KOSDAQ.
The motive for the re-organisation appears to retaining the strength of the chip division. According to Jusung's 2023 financials, last year’s semiconductor equipment sales amounted to USD 157.1 million, which is around three quarters of all revenue. Spinning off will presumably free the division from the need to offset losses in other units.
The company said: “The first-quarter performance reflects the market situation where next-generation semiconductor equipment has yet to translate into revenue. We plan to strengthen the competitiveness of our semiconductor ALD equipment and diversify our clientele to build a foundation for sustained growth.”
