Process equipment as valuable as chips: Samsung Electronics and SK Hynix suppliers post record results [Semiconductor Equipment 'Spring' (Part 1)]

As the global semiconductor market enters a supercycle, semiconductor equipment makers are reaping the benefits. These companies continue to sign equipment supply contracts with major chipmakers at home and abroad, including Samsung Electronics, SK hynix, and Micron Technology, Inc. As a result, many semiconductor equipment firms are expected to post record results this year.
■Rapid growth centered on K-semiconductors... expectations for gains
According to the industry on the 27th, TES Co., Ltd. signed equipment supply contracts with SK hynix Inc. three times in March alone, totaling 94.9 billion won. The company is strong in plasma chemical vapor deposition equipment, or PECVD, which uses plasma to precisely deposit the necessary materials onto wafers during semiconductor processing.
D I Corp, together with its subsidiary, also delivered strong results in the semiconductor inspection equipment segment. The company disclosed that it signed a 9.6 billion won contract with Samsung Electronics Co., Ltd. to supply semiconductor inspection equipment. In particular, its subsidiary Digital Frontier signed a contract to supply HBM inspection equipment to SK hynix Inc. worth 96.2 billion won.
The reason orders have continued to flow in for semiconductor equipment makers this year is that the semiconductor market is expected to grow sharply, prompting chipmakers such as Samsung Electronics and SK hynix to increase investment. According to World Semiconductor Trade Statistics (WSTS), the global semiconductor market is projected to reach a record $975 billion this year, up 26.3% from $772 billion last year.
A WSTS official said, "Demand is expected to rise across all semiconductor product categories, with the memory semiconductor segment alone forecast to grow 39.4% from a year earlier." The official added, "All regions, including the Americas at 34.4% and Asia-Pacific at 24.9%, are expected to post growth of more than 10%."
One notable point is that semiconductor investment tied to the global market expansion is expected to concentrate in South Korea. According to market researcher Semiconductor Intelligence, Taiwan Semiconductor Manufacturing Company Limited (TSMC) is expected to rank first in semiconductor investment this year with $54 billion.
Samsung Electronics Co., Ltd. is expected to come in second with $40 billion, while SK hynix Inc. is projected to rank third with $27.4 billion. Combined, Samsung Electronics and SK hynix would invest about 20 trillion won more than TSMC. Micron Technology, Inc. is expected to follow with $20 billion, and Intel Corporation with $17.7 billion.
■Expansion and R&D investment continue
Industry consensus is that this trend of rising investment by chipmakers will continue for several years. As a result, semiconductor equipment companies are also investing to expand factories and research and development bases in order to meet the larger order volumes expected over the medium to long term.
In one example, HANMI Semiconductor Co., Ltd. is building a "Hybrid Bonder Factory" with an investment of 100 billion won, aiming to begin operations in the first half of next year. The factory is planned for Juan National Industrial Complex in Seo-gu, Incheon, with a total floor area of 14,570 square meters.
Jusung Engineering is also pushing ahead with the construction of the "Jusung Engineering Yongin Second Research Center" in Yongin, Gyeonggi Province, with an investment of 100 billion won. The new center, with a total floor area of 20,495 square meters, will be built near the existing Jusung Engineering Yongin R&D Center. Completion is expected in the second half of next year. Justem Co., Ltd. recently finalized plans to build a new headquarters in the Yongin Semiconductor Cluster by 2028, with a total floor area of 19,800 square meters.
Chairman Hwang Chul-joo of Jusung Engineering said, "The semiconductor market has entered a supercycle because an unprecedented new market has opened with the era of artificial intelligence (AI)." He added, "The global semiconductor market has only just entered the first stage of growth, and semiconductor equipment companies need to respond proactively to rising investment in upstream industries."


butter@fnnews.com Kang Kyung-rae Reporter