이 기사는 2021년 06월 02일 07:30 thebell 에 표출된 기사입니다.

Samsung Electro-Mechanics is considering options for its WiFi module business after its attempt to sell the unit ended in failure.

Chemtronics, which makes electronics parts, agreed to buy the unit for about 100 billion won ($90.5 million) earlier this year, but the deal fell through last week. Samsung Electro-Mechanics said on Monday that nothing has been decided yet on the next steps.

Samsung Electro-Mechanics last year decided to sell off the business to focus on its core operations. The company’s Thailand subsidiary, which produces WiFi modules, is 75% owned by Samsung Electro-Mechanics and 25% owned by Samsung Asia Private, a Singapore unit of Samsung Electronics. The collapsed deal included a sale of a 100% stake in the Thai unit.

The WiFi module business only accounts for a small portion of Samsung Electro-Mechanics’ total revenue. The Thailand subsidiary recorded revenue of 289 billion won and a net income of 8.4 billion won in 2020, versus 2.8 trillion won in revenue generated by the company’s module division in the same period. The sale price is also insignificant compared to the company’s cash and cash equivalents of 1.62 trillion won as of the end of March.

Samsung Electro-Mechanics may seek to find a new buyer or liquidate the business, but chances for the latter appear slime, industry watchers said.

“The WiFi module business incurred losses in some years due to labor costs, but it has an ability to generate cash flow and counts big techs like Samsung Electronics and Apple among its customers,” said an industry insider.

Another source said: “WiFi modules are used for various applications. The unit’s technological competitiveness compared to Chinese manufacturers could also attract interest from potential buyers at home and abroad.”

Samsung Electro-Mechanics plans to offload non-core, low-profit businesses and instead focus on high-profile products such as camera modules for smartphones, 5G communication modules and package substrates used in semiconductors. It is also doubling down on efforts to expand its multilayer ceramic capacitor business for future growth. (Reporting by Hye-ran Kim)