(Yicai) July 17 -- Hangzhou MDK Opto Electronics is acquiring two South Korean companies that are involved in the production of ultra-thin optical soft film filters for electronics giant Samsung Group for KRW3 billion (USD2.2 million) to close gaps in its business and gain a foothold in Samsung’s supply chain.

Haishuoli Optoelectronic, which has a factory in China’s Suzhou, and Innowave Vietnam, which has a plant in Vietnam, are both controlled by South Korean national, Yoo Sungjoon, the Chinese supplier of semiconductor optics equipment and components said yesterday.

The two firms are involved in different stages of producing ultra-thin optical soft film filters. Haishuoli supplies raw materials to Innowave, and Innowave produces parts that end up in Seoul-based Samsung’s smartphone cameras, Hangzhou-based MDK said.

Both companies are currently running at a loss, partly because Yoo had been looking to sell and had scaled back investment, leaving them both operating at less than half their usual capacity, MDK said.

The deal will help MDK grow its overseas business, especially in South Korea, which holds a strategically important position in the global optics, optoelectronics and semiconductor industries, it said. It will also help the company better integrate its global supply chain, build overseas sales networks and improve international business operations.

MDK’s share price [SHA:688079] closed up 0.8 percent at CNY10.17 (USD1.42) today. Earlier in the day it advanced 3.8 percent to CNY10.48.

Editor: Kim Taylor