Samsung Electro-Mechanics will sell its Wi-Fi module business, TheElec has learned.
It will sell the business to a company that split-off from Samsung Electro-Mechanics.
The Wi-Fi module operations in Suwon, South Korea and Thailand will be sold. Suwon employees 60 people and Thailand 440. Personnel are included in the deal.
Samsung Electronics, the largest client of the modules, designated the chip to be used in the Wi-Fi modules to Samsung Electro-Mechanics, making it difficult for the latter to turn a profit from the operation.
The Wi-Fi module business accounted for less than 10% of Samsung Electro-Mechanics’ sales, people familiar with the natter said.
KB Securities is underwriting the deal. The asking price for the business is around 150 billion won.
Samsung Electro-Mechanics previously sold its chip coil business to Chemtronics for 21 billion won.