[Exclusive] Dawonsys to Receive Equity Investment from Samsung Electronics... Emerges as Strategic Partner

[Asia Economy Reporter Lee Seon-ae] Daewon Sys, a power supply specialist company listed on KOSDAQ, is receiving equity investment from Samsung Electronics. After successfully developing electronic impedance matcher technology for next-generation nano semiconductor etching processes, it has passed the final performance test by Samsung Electronics. Accordingly, they are set to formally sign a supply contract with Samsung Electronics and simultaneously execute an equity transaction to establish a strategic business partnership.

On the 12th, according to Samsung Electronics and Daewon Sys, the two companies are negotiating a semiconductor parts (electronic impedance matcher for next-generation nano semiconductor etching processes) supply contract and an equity investment agreement. The deal is expected to be finalized within this month. Inside Samsung Electronics, the decision to invest in equity has been completed, so only the final signature remains.

The equity investment is estimated to be between 5% and 10%. Based on Daewon Sys’s market capitalization of approximately 590.2 billion KRW as of the previous trading day, the maximum equity investment amount exceeds 50 billion KRW.

Since its founding in January 1996, Daewon Sys has distinguished itself in the power electronics industry by manufacturing electric conversion devices such as nuclear fusion power supplies and plasma power supplies. In 2010, it gained attention by exclusively supplying power supplies for the Korean superconducting nuclear fusion device (KSTAR), known as the artificial sun, and was listed on KOSDAQ in October of the same year. It has maintained a continuous cooperative relationship with Samsung Electronics.

The driving force behind Daewon Sys’s rise as a strategic business partner of Samsung Electronics is its electronic impedance matcher technology for next-generation nano semiconductor etching processes. This technology can reduce etching process time by more than 20%. Using the latest high-speed high-voltage power semiconductors (SiC, GaN MOSFET), the impedance matcher enables the design of an electrically variable capacitor that is 1,000 times faster than conventional vacuum variable capacitors.

After successfully developing this technology, Daewon Sys has conducted long-term performance testing with Samsung Electronics and is preparing for mass production. At the end of last month, Daewon Sys signed a parts supply contract with global semiconductor equipment company Lam Research. This transaction is also ultimately for delivery to Samsung Electronics, which is expected to further solidify the partnership between Daewon Sys and Samsung Electronics. The scale is about 5 billion KRW, and the transaction is expected to proceed actively from early to mid-next year.

Meanwhile, last year Daewon Sys announced its 'Daewon Universe 2030' vision event, presenting a goal to achieve 3 trillion KRW in sales by 2030. From 30 billion KRW in sales at the time of its 2010 listing, it reached 300 billion KRW in 10 years and aims to grow tenfold again in the next decade.