Doosan speeds up chip back-end processing capacity with additional buyout

[Source: Doosan Group]

Doosan Group, South Korea’s conglomerate strong in energy and industrial machinery production, is going after a wafer back-grinding company in months after it purchased chip wafer and packaging test company Doosan Tesna to expedite expansion in the chip back-end processing sector.

According to the investment banking and business sources on Monday, Doosan Tesna is currently carrying out due diligence to acquire EngiOn, which specializes in wafer back-grinding. Doosan acquired Tesna, a major chip testing service provider, for 460 billion won ($354.96 million) in April, and rebranded it as Doosan Tesna.

Wafer testing is for electrical, temperature, and functional checkups of raw circular wafers engraved with semiconductor chips to determine their quality. After the test, wafers go through back-grinding for different thickness levels, in which EngiOn has strength. With its acquisition, Doosan will be able to broaden the chip back-end process lineups.

Doosan Group pledged to invest 1 trillion won in Doosan Tesna for the next five years. Chairman Park Jeong-won vowed to make Doosan Tesna one of the world’s top five players in semiconductor testing in five years. Back-end testing is one of the three growth drivers Doosan pursues along with energy and machinery businesses.

Doosan Tesna achieved 207.5 billion won in sales in 2021. Its shares were up 4.60 percent to 30,700 won in the early trading on Tuesday.

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