SK Siltron said Monday it has acquired the silicon carbide wafer business of Michigan-based DuPont to enter the electric vehicle and 5G network markets.

The affiliate of SK Group -- the only wafer producer in South Korea -- decided in September to acquire the SiC wafer business from DuPont for 540 billion won ($450 million). The deal was concluded Saturday.

SiC wafer is a next-generation chip material that is a compound of silicon and carbon, offering unique electrical and thermal properties. It is needed for power semiconductors, seeing growing demand from the EV and 5G network markets.

“The company will continue making new investments in related technologies and expects growth in production of SiC wafers and employment in the US,” the firm said in a statement.

By Song Su-hyun (song@heraldcorp.com)