[BizLeader] Yoo Won-yang, CEO of TMC: "Quantum Jump through True Domestic Production of Semiconductor Specialty Gases"

Leading Company in Domestic Production of Semiconductor Specialty Gases
Cumulative Sales of 234 Billion KRW and Operating Profit Margin of 18% in Q3 This Year
Entered 'Rare Gas Recycling' Business After KOSDAQ Listing

Yuwonyang, CEO of TEMC.

[Asia Economy Reporter Jang Hyowon] “The growth engine of our company is the passion for ‘genuine localization’ that takes place entirely domestically, from raw materials to production.”

Yu Wonyang, CEO of TEMC, which is preparing for a KOSDAQ listing in January 2023, told that this is the secret behind the company’s rapid growth. TEMC is a company that produces specialty gases used in core semiconductor processes. The company started in 2015 after successfully localizing specialty gases for semiconductors, which had been mostly dependent on foreign sources.

CEO Yu said, “After working for 20 years in the gas industry and seeing that foreign companies monopolized the gas sector, I thought that although the entry barrier was high, we needed to localize specialty gases.”

TEMC’s growth goes hand in hand with localization. Sales of 3.2 billion KRW in 2015 doubled in 2016 when they succeeded in localizing excimer laser gas. At that time, TEMC obtained the ‘Cymer Global Certificate,’ held only by three global companies, proving its global competitiveness.

Subsequently, they achieved successive localization successes such as carbon monoxide (CO), high-purity CHF3 purification equipment, and raw gas (Crude Ne/He) extraction facilities, expanding their product lineup. Currently, they supply products not only to major domestic semiconductor companies but also to global chipmakers.

The sales composition is highest for xenon (Xe) and krypton (Kr), used in semiconductor etching and ion implantation processes, accounting for 42.4%, followed by excimer laser gas used in lithography processes at 30.2%. Specialty gases in the CF series account for 17.9%, CO gas 4.5%, and COS gas 1.9%, among others.

By expanding its product lineup and customer base, TEMC rapidly grew, recording sales of 234 billion KRW through the third quarter of this year. The average annual sales growth rate over the past three years reached 55.8%. Operating profit also reached 43.1 billion KRW in the third quarter, achieving an operating margin of 18.4%.

CEO Yu explained, “TEMC’s localized products are often prioritized for review by customers,” adding, “In recent years, a wave of localization has swept through semiconductor manufacturers, and TEMC’s products, which have achieved ‘genuine localization,’ have attracted attention.”

The genuine localization pursued by TEMC means conducting all processes domestically, from raw material procurement to production and quality assurance. Achieving genuine localization allows relative freedom from external issues such as Japan’s trade retaliation, the US-China trade dispute, and logistics crises caused by COVID-19.

TEMC is the only company in Korea capable of genuine localization of specialty gases. In fact, last January, together with POSCO, they succeeded in localizing the production facility and technology for semiconductor-grade neon (Ne) gas extracted from air for the first time in Korea.

CEO Yu said, “Specialty gases are selected 1 to 2 years before launch, so item selection and pre-investment are essential,” and added, “Our strength lies in forming a task force team (TFT) that includes marketing, production, process, and quality departments, rather than just a few researchers developing theoretically, enabling us to quickly secure items capable of ‘genuine localization.’”

After listing, TEMC plans to expand its lineup of localized products. Sales of diborane (B2H6), an essential semiconductor material with global top technology, are expected to accelerate from next year. Heavy hydrogen (D2), used in semiconductor heat treatment processes, will begin mass production next year. COS gas, for which they have secured independent technology, plans to expand manufacturing facilities ahead of supplying domestic large corporations next year.

He said, “While continuing to focus on product localization, we will also enter the rare gas recycling business using TEMC’s unique separation and purification technology,” adding, “This business can reduce costs and address environmental issues, thereby strengthening environmental, social, and governance (ESG) management.”

Meanwhile, TEMC is preparing for a KOSDAQ listing in January. The total number of shares offered is 2.2 million. The desired offering price is 32,000 to 38,000 KRW per share. The offering amount is 70.4 billion KRW based on the lower end of the desired price. Demand forecasting will be conducted on January 4-5, 2023, followed by subscription for general investors on January 10-11. The listing underwriter is Hanwha Investment & Securities.