South Korea’s Hanwa Group considers entry into semiconductor machinery business

Thursday, June 24, 2021

At the beginning of June, the Korea Times had published a corresponding report based on information from the industry. According to the report, Hanwa Group is planning to enter the manufacturing of machinery for the production of computer chips and other semiconductors. The company wants to expand its business model and hopes for synergy effects from its existing production of materials for the manufacture of chips. The focus of the new business unit is to be the production of machines and equipment for coating. In the production of chips, the so-called silicon wafers are coated with an extremely thin layer of certain chemical elements.

Hanwa Corporation is already involved in the production of machines for other industries and hopes to attract more customers with the planned division. Another Hanwa division operating worldwide in the chemical sector produces nitric acid. This is considered a core ingredient in the process of chip coating and wet cleaning. A Hanwa spokesman recently confirmed that the company plans to enter the chip machine business. However, a final decision has yet to be made.

Industry experts see Hanwa’s entry as a good opportunity to advance the company’s growth. Companies around the world are investing in expanding their production capacity due to the shortage of computer chips. Companies from Japan and the U.S. are leading the way in coating machines for semiconductors. According to the Korean Institute of Industrial Trade and Economics (KIET), Japan’s Tokyo Electron and the US’ Applied Materials and Lam Research have a 70 percent market share. In South Korea, medium-sized companies such as Jusung Engineering, Wonik IPS, Eugene Techonology and Tes produce machines for coating chips. KIET estimates that the production competence of Korean companies in this area is 90 percent compared to the market leaders.

South Korea is considered one of the most important and innovative industrial nations in the world. Many products imported to South Korea have to be tested and certified in advance. Many products, such as computer chips, semiconductors and manufacturing equipment, imported into South Korea must be pre-tested and possibly certified with the KC Mark. Korea certification is one of the biggest barriers to entry for products to be imported into Korea.

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