MELCON to "Capture EUV and HBM Demand"... To List on KOSDAQ Next Month

[Financial News] MELCON, a company specializing in ultra-precision environmental control systems, is strengthening its capabilities for advanced semiconductor processes, including extreme ultraviolet (EUV), and expanding into high-bandwidth memory (HBM) testing and packaging processes. The company plans to expand its production capacity and product lineup through a KOSDAQ listing next month.
At an IPO media briefing held at 63 SQUARE in Yeouido, Seoul, on the 22nd, MELCON CEO Kim Seong-il said, "As semiconductor circuits become finer, reaching 2 nanometers (nm), 1.5 nm and 1 nm, equipment that controls temperature, humidity and contaminants becomes extremely important. We will strengthen our technological and product competitiveness in line with changes in semiconductor processes and expand our business into areas such as testing and packaging processes."
Founded in 2003, MELCON develops and supplies equipment that maintains consistent temperature, humidity and air cleanliness inside semiconductor manufacturing equipment. Photolithography, the process used to form semiconductor circuits, is a key stage that requires precise environmental control because even small temperature changes or airborne contaminants can affect product quality and yield. MELCON supplies THC, which controls temperature and humidity inside photolithography equipment, and XPS, which provides high-purity air free of impurities. THC is used in Tokyo Electron's (TEL) track equipment, while XPS is applied to ASML's exposure-tool scanners.
MELCON's average share of the domestic THC market over the past three years was 71%. According to MELCON, its domestic market share for THC used in advanced semiconductor processes was 100% last year. XPS was localized in Korea for the first time in 2022, and MELCON was registered as a qualified supplier to ASML last year.
Growing investment in advanced semiconductors driven by the spread of artificial intelligence is also creating an opportunity for growth. MELCON expects demand for environmental control equipment to increase as semiconductor manufacturers expand their investment in EUV equipment required for advanced processes. The share of EUV products in THC revenue rose from 20.6% in 2023 to 32.6% in 2024 and 41.0% last year. MELCON plans to increase its THC production capacity from 225 units to 400 and its XPS capacity from 70 units to 100.
Kim said, "EUV products are supplied in larger quantities than existing products, and their prices are also about 1.5 to 2 times higher. We expect the expansion of EUV processes to contribute to revenue."
MELCON developed THC for High-NA EUV, a next-generation exposure technology that implements finer circuits than conventional EUV, late last year. The company plans to expand the supply of related equipment as major semiconductor manufacturers adopt next-generation processes.
The company is also developing equipment for testing and packaging processes as a new growth engine. It is developing a prober chiller that controls temperatures during wafer inspections. THC for hybrid bonders used in HBM manufacturing has completed development and is undergoing customer evaluations. MELCON is also developing THC for NAND.
Kim said, "As the industry moves toward HBM, demand is rising sharply for equipment that requires precise temperature control during testing and packaging processes."
The company's performance is also growing as major semiconductor manufacturers resume capital investment amid a recovery in the semiconductor market. MELCON's revenue increased 66.5%, from 25.1 billion won in 2024 to 41.8 billion won last year. Over the same period, operating profit rose from 400 million won to 6.2 billion won. Revenue in the first half of this year was 22.1 billion won, while the operating margin was in the 16% range.
MELCON will offer 2.5 million shares through the IPO. The indicative offering price range is 10,700 to 12,300 won, with expected proceeds of 26.8 billion to 30.8 billion won. Its expected market capitalization is 134.6 billion to 154.7 billion won. The general subscription will take place on October 1 and 2, and the company is scheduled to list on KOSDAQ on October 15. Daishin Securities is the lead manager.
Kim said, "Using the listing as an opportunity, we will strengthen our capabilities for advanced semiconductor processes such as EUV and expand our business into semiconductor testing and packaging processes as well as new industries."

[email protected] Lee Jeong-hwa Reporter