[Special Stock] SPG Breaks Japan's Precision Reducer Monopoly... Follows Samsung Semiconductor Equipment, Also Penetrates Largest US Company

[Asia Economy Reporter Yoo Hyun-seok] SPG, a precision geared motor manufacturer, is showing strong performance. It appears that the news of passing the final test for the SR reducer to be applied to CNC machine tools produced by A Company, the largest machine tool company in the United States, has had an impact.

As of 2:15 PM on the 4th, SPG was trading at 12,850 KRW, up 15.25% (1,700 KRW) compared to the previous trading day.

Supply will begin in August. To gain supply approval, SPG underwent about three years of testing starting from mid-2018 and was recognized for its technological capabilities. The reducer used in CNC machines produced by A Company, the largest machine tool manufacturer in the U.S. market, has been exclusively supplied by Japanese company B until now. With this approval, the SR reducer developed by SPG will be supplied jointly.

The SR reducer produced by SPG is a reducer that controls torque and speed with ultra-precision, requiring accuracy within 1 arcmin. It is a core component used in machine tools, semiconductor inspection equipment, and robot joints. The models approved by A Company are two types, and SPG’s SR reducers currently in production include products that can withstand up to 500 kg based on maximum load.

Yeoyoung-gil, CEO of SPG, explained, "Currently, the production capacity of SR reducers is about 4,000 units annually, but we will install dedicated equipment additionally in August this year," adding, "Production capacity is expected to increase up to 10,000 units." He continued, "Currently, only four models are in mass production," and "It takes about two months to add up to four models simultaneously, so to prevent excessive facility investment, we have prepared to add new models for mass production when customer orders come in."

In 2018, SPG initially supplied 50 SR reducers used in semiconductor inspection equipment produced by C Company, a Samsung Electronics affiliate. Last year, about 350 units were supplied, and this year, due to the semiconductor industry boom, about 800 units are expected to be supplied.