DuPont Electronics & Imaging (E&I) has signed an agreement to sell its Compound Semiconductor Solutions (CSS) business to SK Siltron. Part of South Korean conglomerate SK Group, SK Siltron manufactures silicon wafers, an essential material for the semiconductor market.

According to Korean media, SK Siltron’s board of directors agreed to pay $450 million for the business. “The acquisition is designed to boost our market presence and enhance our technological edge,” an SK Siltron official told The Korea Herald. “By enhancing our capabilities in manufacturing and research and development, we will improve our competitiveness.”

Jon Kemp, president of DuPont E&I, explained that the CSS business, which has state-of-the-art technologies for SiC [silicon carbide] wafer production to serve the power electronics market, is a not a strategic priority for the company. “Given its strategic focus, we believe SK Siltron will be a better owner and that the CSS business will thrive under SK Siltron’s ownership,” he said.

DuPont added that the move is consistent with its strategy of active portfolio management and disciplined capital allocation to further align its portfolio with high-return opportunities.

The transaction is expected to close by the end of 2019, subject to regulatory approvals.