M&E, Korea's First Domestic Semiconductor Seal Manufacturer: "We Will Break the Foreign Market Share Barrier"

Kim Manho, CEO of M&E

Dominated the market with DuPont and Kalez
Expecting double-digit sales growth this year

Launching new product resistant to deformation next year
Establishing a Chinese subsidiary to challenge market entry

M&E headquarters building in Yongin-si, Gyeonggi Province.
Photo by M&E

[Asia Economy Reporter Myunghwan Lee] "Currently, there is an inevitable market share held by foreign products in the domestic market. Our ultimate goal is to break down that barrier."

On the afternoon of the 5th, Kim Manho, CEO of M&E, met at the company’s headquarters in Yongin, Gyeonggi Province, expressing a confident determination about the company’s future goals. He aims to produce products that boast quality comparable to foreign products while maintaining price competitiveness.

M&E is a company that manufactures seals to maintain vacuum in semiconductor and display equipment. Seals such as O-rings and valves fill the gaps in semiconductor equipment that require high precision, maintaining the vacuum of the equipment. At first glance, they may seem insignificant, but seal components are key parts of semiconductor equipment. Due to the nature of semiconductor equipment that requires nanometer-level precision, if the vacuum is not properly maintained or even a tiny foreign substance enters, it can have a huge impact on product manufacturing. The cause of the 1986 Challenger space shuttle disaster, which exploded 73 seconds after launch, was also due to the deformation of the O-ring in the propulsion system caused by cold weather, which prevented proper sealing.

M&E succeeded in domestic production of seals for semiconductor equipment for the first time among Korean companies. Until then, advanced industrial perfluorocarbon seals were dominated in the domestic market by multinational companies such as DuPont and Kalrez, based in the US and Europe. M&E not only produced seal products but also knocked on the doors of domestic companies through research and development for optimal material blending, eventually being chosen by major conglomerates including SK Hynix and LG Display.

M&E has achieved a steady annual sales growth rate of 10-20% despite the ups and downs of the semiconductor market. Unlike typical semiconductor equipment material manufacturers, M&E produces consumable seals, so it was less affected by the semiconductor industry downturn. This year, the company expects sales to increase by about 10% compared to last year.

M&E plans to launch a new product in the first half of next year that reduces impurities while withstanding deformation. This product improves sealing performance and lifespan by about 50% compared to existing products. The company is also exploring overseas market entry to diversify demand, anticipating a downturn in the semiconductor market next year. The company explained that inquiries for supply increased from companies using foreign seals when the supply chain was hit by the Russia-Ukraine war. M&E is currently establishing a manufacturing subsidiary in China to lay the groundwork for market entry.

M&E stated that it has no immediate plans for an initial public offering (IPO). The company will consider an IPO once its scale reaches a level that attracts market expectations. CEO Kim said, "M&E is a company that is steadily growing even now," adding, "We will consider an IPO once sales reach a certain level."