Samsung Electronics has successively made equity investments in domestic semiconductor materials, parts, and equipment companies. After investing in two companies three months ago, Samsung Electronics then invested an additional 75 billion won (about 440 million yuan) in four companies. It is reported that Samsung`s move is to strengthen the construction of an ecosystem of materials, equipment and parts that has become more important since Japan`s export control last year.
According to a South Korean media ETNews report on November 2, 4 companies including KC Tech, Lot Vacuum, Mico, and New Power Plasma (NPP) announced that the company has decided to implement a paid increase in Samsung Electronics. The scale of paid capital increase is 21 billion won (about 120 million yuan), 19 billion won (about 110 million yuan), 21.7 billion won (about 120 million yuan), and 12.7 billion won (about 74.69 million yuan). 74.4 billion won (about 440 million yuan). These are all companies that have played a pioneering role in the localization of key components and equipment for semiconductor pre-engineering in Korea.
KC Tech is competitive in the chemical process polishing (CMP) field. CMP refers to the process of chemically and mechanically planarizing the surface of the original plate, so that the required films on the semiconductor wafer can be sequentially coated. Although the dependence on overseas manufacturers such as American Applied Materials and Japanese EBARA is quite high, KC Tech has been supplying Samsung Electronics due to the continuous localization of equipment and materials.
Lot Vacuum is a company that realizes the localization of more than 95% of dry vacuum pumps into semiconductor equipment. Dry vacuum pump is a pump that sucks various substances and bodies in semiconductor equipment to make it in a vacuum state. This kind of pump is necessary in order to cover the film evenly on the wafer without contamination. Companies with long-term karma such as Edward in the United Kingdom have been providing products, but recently, due to the recognition of Lot Vacuum's technical strength, the supply has shown a gradual increase.
New Power Plasma (NPP) is a company that realizes the domestic production of high-frequency (RF) components-RF Generator, Matcher, etc., which play the role of semiconductor engine. In this field, companies such as MKS and AE have a considerable share. Recently, NPP and Samsung Electronics have exchanged MOUs to jointly develop new products and build mass production lines to accelerate localization in Korea.
Mico said that Samsung Electronics has implemented a 21.6 billion won paid capital increase to its subsidiary Mico Ceramics. ico Ceramics is a core component that maintains temperature stability during the chemical vapor deposition (LPCVD) process while heating the wafer to a high temperature. It is a consumable product that accounts for more than 10% of the price of LPCVD equipment. Whether Samsung Electronics can strengthen cooperation after investing in shares has aroused industry concern.
In July this year, Samsung Electronics invested about 110 billion won in YIK and Snstwch, accelerating the pace of investment in domestic materials, equipment and parts companies. This is the first investment in Korea's domestic semiconductor field since 2017, with Soulbrain and Dongjin Semeken. In particular, the investment scope has been expanded to core parts and materials that have been considered weaknesses in the domestic semiconductor ecosystem.
A relevant person in the industry said: "After Japan implemented export controls, Samsung Electronics seemed to be eagerly aware of the problems of changes in materials, equipment and parts, and launched various strategies."