Weldex, Earnings Improvement Due to 3D-NAND High-Layering Impact

[Asia Economy Reporter Hyungsoo Park] Hana Financial Investment forecasted on the 27th that Woldeks is likely to see performance improvement due to expansion.

Woldeks is a specialized processing company that supplies materials such as silicon, quartz, and alumina series used in etching processes among semiconductor parts and materials.

Kim Kyungmin, a researcher at Hana Financial Investment, explained, "As of the first quarter of this year, the sales composition ratio is 57% silicon, 26% quartz, and 17% alumina and others," adding, "Since 2018, consolidated sales have exceeded 100 billion KRW annually."

He continued, "Due to the increased complexity of 3D-NAND, the etching process in semiconductor manufacturing has become more demanding," and added, "The demand for parts and materials required for etching process equipment has increased."

He emphasized, "As of 2018, the proportion of high-layer structures with 64 to 72 layers in global 3D-NAND was 61%," noting, "This is higher compared to 13% in 2017."

Researcher Kim analyzed, "Since 2019, the proportion of even higher-layer structures with 92 to 128 layers has increased," and stated, "While the market size of the upstream industry is expanding, Woldeks has increased its market share among overseas and domestic customers."

He also added, "The expansion to meet demand has been completed," and "Additional expansion is being pursued this year as well."

He explained, "The estimated sales for the first half of this year are 87.1 billion KRW, and for the second half, 99.2 billion KRW," adding, "The reason for the 14% increase in sales in the second half compared to the first half is that the operational effects of the expansion completed in March this year will be fully reflected in the second half."