Hanwha Solutions Corp. a chemical and energy unit of South Korean conglomerate Hanwha Group, said Thursday it is acquiring the telecommunication module business of Samsung Electro-Mechanics Co. in a bid to diversify its electronics component sector.

Under the agreement signed between the two companies earlier in the day, Hanwha Solutions will take over the WiFi module and the high-speed fifth-generation (5G) milimeter wave (mmWave) antenna module divisions from the Samsung unit, it said in a press release.

The deal is expected to help Hanwha Solutions further expand into modules business, especially the components for connected devices used in automobiles, such as infotainment and advanced driver-assistance systems.

With the acquisition, Hanwha Solutions said it will also seek to tap into fast-growing markets such as wireless earbuds and components for virtual reality and artificial reality devices.

The two sides plan to complete the takeover process by the end of March next year, according to Hanwha. (Yonhap)