South Korean manufacturer H&S Hightech broke the monopoly of Japanese companies in the Anisotropic Conductive Film (ACF) market, which is one of the core display materials. And announced the ambitious goal of 50% market share in South Korea in the next three years. Early next year, H&S Tech plans to go public on KOSDAQ and expand R&D investment.
According to a Korean media ETNews report, H&S Hightech stated on December 2 that ACF South Korea's market share has reached 13%. Japanese manufacturers Sony Chemical and Showa Denko share the remaining 87% (Sony Chemical 77%, Showa Denko 10%). This is the first time that a Korean company has achieved a double-digit market share in the ACF market monopolized by a Japanese company in a major country for display materials.
H&S Hightech was established in 1995 under the name of DSI and changed to its current name in 2009. In 2012, it successively acquired the ACF business unit of EXAX, and in 2013, it successively acquired the ACF business unit of LG Innotek, and obtained the core technology of ACF. And the company is also implementing government projects for large enterprises and localization of display materials.
Driven by the growth of the ACF market, H&STecg's sales have also achieved rapid growth. In 2018, the company's sales were 38.2 billion won (approximately 210 million yuan), and it is expected to exceed 80 billion won (approximately 430 million yuan) this year. It is expected to exceed 100 billion won (about 540 million yuan) next year. In addition, the company has also formulated the goal of increasing the domestic market share of ACF to 30% next year and 50% in 2024, achieving the first domestic and second-largest business goal in the world.
Mass production of ACF for smartphone cameras, touch screens, and large-size display PCBs is the biggest weapon. In addition to the development of ultra-uniform ACF for Micro LED, the company also prepares for the new generation of display market. This is a technology that can handle ultra-fine processes below 30 microns (μm), in order to respond to the shift of the large-size display market such as TVs to ultra-high image quality such as OLED and Micro LED.
H&S Hightech was listed on KONEX in South Korea in 2015. In order to expand its business and expand R&D, it will promote its listing on KOSDAQ in the first half of next year. The company plans to increase R&D investment costs by 20% of sales.
H&S Hightech President Kim Jong-hee said: "The listing on KOSDAQ will greatly expand R&D investment and will rank first in the ACF field in a few years."
Anisotropic Conductive Film (ACF) refers to an adhesive film made with a thickness of several tens of micrometers (μm) by mixing a non-electrically charged binder and electrically conductive particles that flow through. Putting this kind of film between the parts and applying heat and pressure for a certain period of time can make the parts bond while also allowing current to flow. It is a necessary material for displays such as organic light-emitting diodes (OLED).