"Catching the Semiconductor Supercycle": IL Acquires Semiconductor Equipment Maker

[Financial News] IL has acquired a semiconductor equipment maker. The strategy is to benefit from the semiconductor supercycle—a major boom expected to continue for the next several years.
According to industry sources on the 10th, IL agreed to acquire an 80% stake in Lead Engineering for a total of 12.8 billion won. The acquisition will be financed with 5 billion won in cash held by IL and 7.8 billion won in convertible bonds (CB). IL also secured a call option on the remaining 20% stake after acquiring Lead Engineering, allowing it to purchase additional shares in the future.
Established in 2006, Lead Engineering is a semiconductor equipment maker with strengths in thermal-processing equipment, including furnaces and rapid thermal processing (RTP) systems. In particular, it has expanded into equipment for silicon carbide (SiC) power semiconductor processes.
Lead Engineering previously supplied SiC power semiconductor equipment to global semiconductor company onsemi in 2021. It has since completed development of SiC rapid thermal processing equipment and other products. To date, Lead Engineering has secured onsemi and SK hynix as customers.
Through the acquisition of Lead Engineering, IL plans to develop its semiconductor equipment business as a new growth pillar. The power semiconductor market for SiC and gallium nitride (GaN) is expected to grow, driven by the expansion of artificial intelligence (AI) data centers, electric vehicles, and energy infrastructure.
IL Chairman Sung-Geun Song said, "This acquisition is not a merger and acquisition (M&A) deal aimed simply at adding revenue. It is a strategic investment to secure Lead Engineering's thermal-processing technology accumulated over 20 years, its SiC equipment capabilities, and references from major semiconductor customers."
He added, "By combining IL's capital and management capabilities, we will accelerate the commercialization of next-generation SiC power semiconductor equipment and develop the semiconductor equipment business as a new growth pillar."
Lead Engineering CEO Hyun-ho Kim said, "Together with IL, we will create the next stage of growth," adding, "We will maintain our existing customer base while pursuing the development and commercialization of new equipment."
[email protected] Kang Kyung-rae Reporter