[Digital Times, Kim Eun] Korean device makers are expected to record record-high earnings in the second quarter, following the first quarter of this year, as Samsung Electronics and SK Hynix boosted semiconductor facility investment.

According to the Financial Supervisory Service`s electronic disclosure system, semiconductor device maker Hanmi Semiconductor recorded the highest quarterly earnings since its establishment, with sales of KRW 60.9 billion in the second quarter of this year. Sales and operating profit increased by 41.7% and 91.7%, respectively compared with the same period last year. This is due to sales of new equipment such as `TSV (Electrode Through) Dual Stacking TC Bonders` jointly developed with SK Hynix last year and the 6th generation New Vision Placement introduced earlier this year has increased.

SFA Engineering, the largest semiconductor equipment maker in Korea, has also surpassed KRW 1 trillion in sales for the first time last year. The company recorded sales of KRW 461.5 billion in the first quarter of this year, up 124 % from the same period last year.

Meanwhile, Semes also surpassed KRW 1 trillion in sales last year after reaching 2015, and it is expected to achieve record sales this year.

Semiconductor device maker Tesco is projected to post record quarterly operating profit of KRW 21.4 billion in the second quarter. It recorded a record-high quarterly record of KRW 63.8 billion in sales and operating profit of KRW 15.7 billion in the first quarter as Samsung Electronics` investment on the first floor of the Pyeongtaek plant was accelerated in the first half of the year. The company is expected to post record sales of KRW 84.8 billion and operating profit of KRW 22.4 billion in the second quarter.

Besides, Wonik IPS’ the second quarter operating profit is projected to increase by more than 30% to KRW 40.1 billion and revenues to reach KRW 192 billion. On the other hand, Jusung Engineering also signed a contract to supply semiconductor atomic layer deposition equipment (ALD) to SK Hynix this year. Sales in the second quarter are expected to reach KRW 75.7 billion, up 15% from last year`s KRW 309.2 billion.
KC Tech also actively supplied semiconductor devices and materials to Samsung Electronics and SK Hynix, resulting in sales of KRW 186.4 billion, an increase of 107.8% from KRW 89.7 billion in the first quarter of last year. In the second quarter, earnings continued to rise, reaching KRW 651.1 billion in sales this year, surpassing KRW 487.5 billion last year. The AP system is also expected to turn around in the first quarter and is expected to continue to improve in the second quarter.

Semiconductor device makers` earnings increased this year as Samsung Electronics and SK Hynix increased their memory capital investment significantly. Samsung Electronics plans to invest KRW 14.4 trillion in Pyeongtaek Semiconductor Complex by 2021 and KRW 6 trillion in Hwaseong Site to secure new facilities for the production of products below 7nm. SK Hynix plans to invest around KRW 7 trillion in facility investment, including its new plant in Cheongju this year.

An industry expert said, "Korean device makers will continue to perform well in the first half of next year. We should continue to work on product diversification and technology development, and not let China or Taiwan companies hit the global equipment market."



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