[Click eStock] Surplus Global Expected to Achieve Record-Breaking Performance This Year

[Asia Economy Reporter Lee Seon-ae] A report has emerged stating that Surplus Global, the largest used semiconductor equipment specialist in Korea and the only listed company in the sector, is expected to achieve its highest-ever performance this year.

On the 21st, Kakao Pay Securities announced that Surplus Global's performance has been improving since hitting a low point in 2019, and this year's results are expected to surpass the record sales of 146.1 billion KRW and operating profit of 27.2 billion KRW achieved in 2018.

Surplus Global specializes in the purchase and sale of used semiconductor equipment. Its sales are largely divided into inventory sales and brokerage sales. Inventory sales involve directly purchasing and selling semiconductor equipment, while brokerage sales occur when the company connects customers' requests for equipment not held in inventory by directly finding sellers.

The regional customer distribution is 20% Korea, 20% Japan, 20% Taiwan, 20% Singapore, and 20% Americas and Europe.

Although customers are experiencing production disruptions due to a shortage of non-memory chips, increasing the supply of 8-inch foundry wafers is currently difficult. Securing physical space is challenging, and 8-inch equipment has long been discontinued, causing serious supply issues. Ultimately, foundry companies have no choice but to either use used 8-inch equipment or purchase used 2-inch equipment and modify it to 8-inch.

Researcher Lee Seung-chul of Kakao Pay Securities stated, "The surge in demand for non-memory chips has led to a boom in the 8-inch foundry market, which is the company's biggest investment point," adding, "With the headquarters relocation this year, we can expect a renaissance in used equipment."

Meanwhile, Surplus Global will relocate its headquarters to an equipment cluster in June together with equipment modification and distribution companies. They expect synergies from refurbishment services and parts supply, and the move is anticipated to maximize benefits amid the 8-inch shortage.