Merck Korea said Monday that it will seek more Korean partners in the semiconductor business after its acquisition of a global electronics firm on May 2.

The German chemical firm purchased AZ Electronic Materials, a firm specializing in the chemical and pharmaceutical businesses headquartered in Luxemburg, as part of its quest for business synergy in the display and semiconductor sector.

The acquisition of AZ could have a significant meaning in the semiconductor business and research and development with Korean firms, said Michael Grund, managing director of Merck Korea, during a press conference.

He said the firm has had business partnerships with Samsung and SK Hynix, and semiconductors would be their key business from now on.

Grund said its semiconductor unit would remain independent, while it merges two units of electronics and liquid crystal displays into one in the Korean arm which could be more powerful entity in the display field.

Asked about possible business expansion into the OLED (organic light-emitting diode) business with Samsung Electronics, he did give a direct answer, saying only that his company has close business ties with many other companies.

He said it expects to diversify business portfolios through the purchase, raising existence of each business unit of liquid crystals, pigments and cosmetics and advanced technologies.

Putting more emphasis on advanced technologies than before, Grund said AZ added a premium specialty chemicals business to its existing business of high-margin liquid crystals, as well as a premium specialty chemicals business to Merck's existing business of high-margin liquid crystals (LC).

He expects the firm will see double digit numbers in sales, as well as revenues as a result of combining the two firms.

"With AZ, not only will Merck, which aims to contribute to the world industry through innovation, be able to further expand its presence in the important Asian growth market, but it will also be able to raise exposure to exciting global megatrends in electronic materials ¯ from smartphones to the most advanced computing devices," Grund said.

The German firm expects to finish the human integration of the two firms in the Korean branch within this year, inviting up to AZ 130 employees.

Merck Korea was founded in 1989 as a Korean unit operating pharmaceutical and chemical businesses with some 430 employees. Merck is a multinational company with around 38,000 employees in 66 countries founded in 1668.

AZ Electronic Materials posted some 530 million euros (739 billion won) in semiconductor, display and light emitting diode (LED) business, 80 percent of it was from Asian countries.

By: DocMemory
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