BCNC Receives KOSDAQ Preliminary Listing Approval... "Aiming for Listing in Q1 Next Year"

[Asia Economy Reporter Minji Lee] BCN&C, a semiconductor equipment parts specialist, announced on the 26th that it has received preliminary review approval for its KOSDAQ listing.

Founded in 2003, BCN&C developed 'QD9' using semiconductor synthetic quartz for the first time in the world for parts such as focus rings, which are essential in the semiconductor etching process. The etching process is a step in semiconductor manufacturing where unnecessary parts except for the circuit on the wafer are removed, accounting for as much as 70% of the consumable parts budget. The focus ring serves to hold the wafer in place while ions formed by plasma etch the surface. As semiconductor chip manufacturing advances in miniaturization and stacking, the importance of durability that prevents dust generation and wear during the etching process is increasing.

QD9, which BCN&C successfully developed and mass-produced first in the world, is highly evaluated by global customers as superior to parts made from the conventional natural quartz material. It is praised for enabling more precise processing and being a high-quality product with excellent durability and plasma resistance. As a result, QD9 is replacing existing parts mainly in high device lines, bringing changes to the etching equipment parts material market.

BCN&C has entered a full-scale growth cycle due to such technological capabilities and the surge in semiconductor demand. Sales, which were only 14 billion KRW and 18.6 billion KRW in 2015 and 2016 respectively, grew significantly to 45.4 billion KRW last year. Currently, BCN&C is focusing on research and development for vertical integration of parts and their raw materials to further strengthen competitiveness. A company official explained that the decision to go public was made to secure momentum for this purpose.

Kim Donhan, CEO of BCN&C, stated, “We are promoting the localization of raw materials for QD9 and the development of better materials to secure corporate competitiveness through vertical integration,” adding, “We aim to become a specialized semiconductor equipment materials and parts company by internalizing materials and supplying materials and products with quality and price competitiveness to the global value chain.”

After receiving preliminary review approval for the listing, BCN&C plans to submit a securities registration statement to the Financial Services Commission early next year and proceed with an initial public offering (IPO) targeting a KOSDAQ listing in the first quarter of next year. The lead underwriter is NH Investment & Securities.