DISCO Corporation (Head Office: Ota-ku, Tokyo, Japan; President: Kazuma Sekiya), announces that a contract was signed with Semtek Co., Ltd., Republic of Korea (Chairman/CEO: Myung-Bae Choi, hereafter Semtek) regarding the transfer of shares to DISCO ABRASIVE SYSTEMS K.K. (Head Office: Shinagawa-ku, Tokyo; President: Kazuma Sekiya, hereafter DAS) owned by DISCO and DD Diamond Corporation, Republic of Korea (Chairman/CEO: Myung-Bae Choi, hereafter DD Dia).

Flow for Transfer of Shares / Transfer Date

1. DISCO transfers DD Dia shares to Semtek. (March 30, 2018)
2. DISCO’s DAS shares are transferred to DD Dia, which is a subsidiary of Semtek. (March 31, 2018)

Reason for Transfer of Shares

DAS is a company that spun off of the division handling industrial diamond tools for processing asphalt, stone, etc., and general cutting wheels for precision parts / glass parts processing etc. in 2001 as a consolidated subsidiary.
DD Dia is a company that manufactures industrial diamond tools, established as a joint venture company in 1995 and later as a consolidated subsidiary (holding ratio: 95 %).
However, DISCO mainly develops precision processing equipment and precision processing tools for the semiconductor and electronic component industries. Because its field of business varies significantly from DAS and DD Dia, DISCO had been facing management challenges in producing synergy in DISCO group. This is the reason for the transfer of shares of both companies. The transfer cost will not be disclosed due to an NDA with those companies.

About Semtek

Semtek is a company which manufactures and sells semiconductor inspection devices, precision tools, etc., and Chairman/CEO Myung-Bae Choi is a DD Dia shareholder. Myung-Bae Choi has served as the Chairman/CEO of DISCO’s sales agency in Korea and DHK Solution Corporation, and has established a long-standing cooperative relationship with DISCO.

Overview of Subsidiary to Transfer Shares

Overview of Partner to Receive Shares