Corning is acquiring Samsung's fiber optics business, a move that will immediately enhance its presence in the growing Asia-Pacific market.
Although the financial terms of the purchase were not disclosed, Corning will get Samsung's fiber optic manufacturing base in Korea and China. The two companies expect to complete the deal by the end of the first quarter of 2015 after meeting necessary regulatory approvals.
Upon closing, Corning said it will integrate Samsung's fiber optic business, with manufacturing facilities in Gumi, South Korea, as well as in Hainan, China, into its Optical Communications business segment.
"We are very excited about the growth opportunities in Korea and the emerging economies in Southeast Asia," said Clark S. Kinlin, executive vice president for Corning Optical Communications, in a release. "Once we are joined by Samsung Electronics' experienced workforce, I look forward to the team building out Corning's global scale and scope to better meet customer needs for innovative fiber optic solutions."
Purchasing this business from Samsung comes at a time when a number of major telcos in China and Korea are enhancing their last mile networks with fiber.
In 2013, the Ministry of Industry and Information Technology (MIIT) issued a mandate that any new home built in areas where a fiber network is available will have a fiber-based broadband connection, for example.
Samsung said the sale is another move to exit what it says is another non-core business while enhancing its focus on its struggling smartphone business.
"We have decided to sell our fibre optics business, in order to focus on our core business areas," a Samsung Electronics spokeswoman said in a Reuters article, but would not say how much revenue the division generates.
For more:
- see this release
- Reuters has this article
- WSJ has this article
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