Semiconductor•display equipment firms to do ¡®aggressive R&D¡¯ investment
Kim Eun | silverkim@ | 2017-02-23 14:32:19

Domestic semiconductor and display equipment firms are focusing on aggressive investment in R&D and new factory construction as these business field are booming now.

According to the industry experts on February 22, SFA- a display manufacturing and semiconductor packaging equipment company, plans to significantly increase its investment cost from previous 2 ~ 3% of revenue to more than 10% this year. The company recorded the highest profit of KRW 1,319.7 billion last year, joining the ¡®1 trillion club¡¯ and is planning to cope with domestic and China orders this year. Previously, SFA acquired a new growth engine by acquiring SNU Precision- a display deposition equipment maker, last December.


Jusung Engineering- a semiconductor and display manufacturing equipment Company is planning to invest KRW 30 billion ~ 40 billion in R&D this year. More than 20% of its revenue will be spent on the development of new display products and solar equipment. Production facilities have also expanded from 2011, securing a production capacity of KRW 500 billion. A representative of Jusung Engineering said that ¡®KRW 56 billion was invested in R&D expenses even in the situation of deficit of KRW 100 billion in 2012, and we were able to achieve the improvement of the present performance by preemptive response of technology development.¡¯


Wonik Materials- a semiconductor material company has set up a third factory to manufacture precursors in Yangcheong region of Cheongju, Chungbuk with an investment of KRW 27.9 billion starting in 2015 and is about to be completed. The investment volume is about 15 % of last year``s revenue. AP system- a semiconductor equipment manufacturer decided to expand its capacity by KRW 32.2 billion last November, and plans to respond to investment in 3D NAND equipment. Eugene Tech- a semiconductor deposition equipment manufacturer also plans to invest about 15% of its revenue this year in R&D as technological competitiveness is the core value in the semiconductor deposition equipment field.


Domestic equipment makers are pushing for aggressive facility investment as they are expected to respond quickly to the situation, as Samsung Electronics, SK Hynix and BOE in China are increasing their equipment investment. One expert of industry mentioned that ¡®As the industry changes rapidly with the 4th industrial revolution, it is important to preoccupy the future market by continuous R&D¡¯. He also added that ¡®However, investments should be based on careful decision as forceful investment may cause opposite effect for manufacturers.¡¯

By Kim Eun silverkim@


[ copyright ¨Ï The Digitaltimes ]