Semiconductor equipment boom thanks to ‘Samsung & SK Hynix investment’ over KRW 10 trillion
Kim Eun | silverkim@ | 2017-05-30 09:54:04
[Digital Times, Kim Eun] As Samsung Electronics and SK Hynix are expected to put at least KRW 10 trillion on semiconductor equipment purchases this year, the semiconductor equipment industry is entering into boom.
According to the industry sources on May 29, Samsung Electronics and SK Hynix plan to invest more than KRW 30 trillion in semiconductor equipment field, mainly about NAND flash this year, while investing about one third of them in related equipment. It is a strategic move for both companies to actively respond to the semiconductor boom phase and prepare for the future market.
Samsung Electronics will commence its first operation in about two years after the construction of its new factory in Pyeongtaek, Gyeonggi, from next month. Currently, related equipment is being brought and is scheduled to be finalized soon, and next month, 64-step 3D NAND flash will be produced. Samsung Electronics plans to invest KRW 24 trillion in semiconductor facility investment such as Pyeongtaek new plant this year. Especially, the cost of purchasing equipment for the Pyeongtaek plant is expected to reach up to KRW 8 trillion. Samsung Electronics is also considering investing more than KRW 10 trillion to build an exclusive 3D NAND flash plant in China. Accordingly, orders for the related semiconductor equipment industry are likely to continue for years to come.
SK Hynix is expected to invest KRW 7 trillion in facilities this year in Incheon, Gyeonggi Province and Cheongju in Chungbuk province. The company plans to invest up to KRW 4.6 trillion in semiconductor equipment, mostly for equipment purchases. The company is in the process of bringing its equipment to the M14 line at the SK Hynix plant in Icheon, and the Cheongju plant in Chungbuk province, which is scheduled to invest KRW 2.2 trillion by June 2019, will start ordering equipment from the second half of the year.
Semiconductor equipment producers Wonik IPS, TES, KC Tech, and Jusung Engineering are rapidly increasing sales as both Samsung Electronics and SK Hynix are expected to invest at least KRW 10 trillion to KRW 12 trillion.
Wonik IPS, exceeding half of last year`s sales, has posted sales of KRW 137.4 billion in the first quarter of this year.
Meanwhile, TES recorded sales of KRW 63.8 billion in the first quarter, up about 40% from the same period last year. TES has signed contracts with Samsung Electronics and SK Hynix to supply semiconductor equipment worth KRW 87.3 billion, which is equivalent to 48% of total sales last year.
KC Tech has also recorded sales of KRW 186.4 billion, an increase of 107.8% from KRW 89.7 billion in the first quarter of last year, as a result of a series of contracts to supply semiconductor equipment to Samsung Electronics and SK Hynix.
Jusung Engineering has also signed a contract with SK Hynix to supply semiconductor Atomic Layer Deposition equipment (ALD) to the company in the first quarter of this year. The company has recorded KRW 76.1 billion sales, up 40.2% from the same period last year.
In the case of DMS, it has reached sales of KRW 54 billion in the first quarter which is 23.4% up from the same period of last year.
An industry expert stated, "Equipment orders are continuing to increase as Samsung Electronics and SK Hynix decided to increase the supply of 3D NAND flash rapidly. In order to meet the equipment delivery date, it is expected that the companies will increase their plant operation up to 100% in the second quarter.”
By Kim Eun silverkim@
[ copyright ⓒ The Digitaltimes ]
According to the industry sources on May 29, Samsung Electronics and SK Hynix plan to invest more than KRW 30 trillion in semiconductor equipment field, mainly about NAND flash this year, while investing about one third of them in related equipment. It is a strategic move for both companies to actively respond to the semiconductor boom phase and prepare for the future market.
Samsung Electronics will commence its first operation in about two years after the construction of its new factory in Pyeongtaek, Gyeonggi, from next month. Currently, related equipment is being brought and is scheduled to be finalized soon, and next month, 64-step 3D NAND flash will be produced. Samsung Electronics plans to invest KRW 24 trillion in semiconductor facility investment such as Pyeongtaek new plant this year. Especially, the cost of purchasing equipment for the Pyeongtaek plant is expected to reach up to KRW 8 trillion. Samsung Electronics is also considering investing more than KRW 10 trillion to build an exclusive 3D NAND flash plant in China. Accordingly, orders for the related semiconductor equipment industry are likely to continue for years to come.
SK Hynix is expected to invest KRW 7 trillion in facilities this year in Incheon, Gyeonggi Province and Cheongju in Chungbuk province. The company plans to invest up to KRW 4.6 trillion in semiconductor equipment, mostly for equipment purchases. The company is in the process of bringing its equipment to the M14 line at the SK Hynix plant in Icheon, and the Cheongju plant in Chungbuk province, which is scheduled to invest KRW 2.2 trillion by June 2019, will start ordering equipment from the second half of the year.
Semiconductor equipment producers Wonik IPS, TES, KC Tech, and Jusung Engineering are rapidly increasing sales as both Samsung Electronics and SK Hynix are expected to invest at least KRW 10 trillion to KRW 12 trillion.
Wonik IPS, exceeding half of last year`s sales, has posted sales of KRW 137.4 billion in the first quarter of this year.
Meanwhile, TES recorded sales of KRW 63.8 billion in the first quarter, up about 40% from the same period last year. TES has signed contracts with Samsung Electronics and SK Hynix to supply semiconductor equipment worth KRW 87.3 billion, which is equivalent to 48% of total sales last year.
KC Tech has also recorded sales of KRW 186.4 billion, an increase of 107.8% from KRW 89.7 billion in the first quarter of last year, as a result of a series of contracts to supply semiconductor equipment to Samsung Electronics and SK Hynix.
Jusung Engineering has also signed a contract with SK Hynix to supply semiconductor Atomic Layer Deposition equipment (ALD) to the company in the first quarter of this year. The company has recorded KRW 76.1 billion sales, up 40.2% from the same period last year.
In the case of DMS, it has reached sales of KRW 54 billion in the first quarter which is 23.4% up from the same period of last year.
An industry expert stated, "Equipment orders are continuing to increase as Samsung Electronics and SK Hynix decided to increase the supply of 3D NAND flash rapidly. In order to meet the equipment delivery date, it is expected that the companies will increase their plant operation up to 100% in the second quarter.”
By Kim Eun silverkim@