The Korea Fair Trade Commission has yet to approve the filing for Affirma Capital's acquisition of 東レ先端素材's FCCL division more than a year after it was submitted, while concerns have been raised over the risk of technology outflows involving a key display material as multiple Chinese companies seek an opportunity to acquire the business.
The Korea Fair Trade Commission has continued reviewing Affirma Capital's filing to acquire the FCCL division of a Japanese-affiliated materials company for more than a year since accepting it, postponing approval. The target is the flexible copper-clad laminate (FCCL) division of 東レ先端素材, and the acquisition price has been reported at approximately KRW 120 billion (approximately JPY 13 billion).
The Commission is concerned about restrictions on competition, but industry participants have criticized the review as excessive, noting that this market accounts for only 3% of the overall market and that alternative technologies exist. Affirma Capital has already acquired Flexion, an FCCL manufacturer, and some have pointed out that its market share could exceed 60% if 東レ先端素材's division is added.
FCCL is a key material for smartphone and television displays, and the sputtering process is the primary manufacturing method. However, the method is estimated to account for only around 2–3% of the overall market. Some believe that, given the scope of the market, substitution with other technologies such as COF could advance and barriers to entry are not high.
Taking advantage of the delay, multiple Chinese companies have intensified their approaches to 東レ先端素材, and speculation has emerged that the sale of the FCCL division could fall through. Concerns are spreading in the industry that business restructuring by Chinese companies could affect the balance of power in the display market.