Semiconductor Material Company Hanamaterials to Establish VC Fund

Accelerating Recruitment for Investment and Management Team
Reviewing Various New Technology Business Finance Companies for Investment Opportunities

Hana Materials, a semiconductor materials specialist listed on KOSDAQ, is making a challenge into the investment business. Attention is focused on how it will create synergy effects with its core business.

According to the investment banking (IB) industry, Hana Materials is establishing a venture capital (VC) firm. To this end, it is recruiting executive-level personnel to oversee investments. Currently, a candidate from a certain capital firm is being mentioned. Personnel responsible for management tasks other than investment have already been hired. The official launch is expected soon.

The vehicle type is being considered not as a typical startup investment company (Changtusa) but as a New Technology Business Finance Company (Singisa). Basically, Changtusa is under the Ministry of SMEs and Startups, while Singisa is under the Financial Services Commission, with different supervisory departments. The establishment capital also differs, with Changtusa requiring 2 billion KRW and Singisa 10 billion KRW.

In particular, Singisa has the advantage of a broader investment scope compared to Changtusa. Hana Materials is expected to carry out various investment activities through its venture capital subsidiary.

Hana Materials mainly produces cathode materials, which are part of the electrodes where current passes in semiconductors, and silicon rings that surround the circular silicon wafers in semiconductor etching processes. These components are supplied to semiconductor etching companies.

Hana Materials has grown by receiving venture capital investments. After securing funds from Innopolis Partners, it expanded its capacity and accelerated its growth. Subsequently, it succeeded in listing on KOSDAQ, solidifying its position in the industry.

Not only did it receive investments, but it also acted as a contributor to venture capital venture funds. Previously, it provided funds to L&S Venture Capital’s ‘L&S Global Semiconductor Growth Investment Association’ in 2018 and Innopolis Partners’ ‘2019 Early Startup Investment Association’ in 2019.

Following receiving venture capital investments and acting as a contributor, its move to establish its own venture capital has attracted industry attention. Since Hana Materials consistently records meaningful sales, there is interest in whether it will provide a certain amount of capital to its first fund.

Previously, semiconductor companies other than Hana Materials also rolled up their sleeves for venture investment. Seoul Semiconductor, a global optical semiconductor technology specialist, established Seoul Management Partners. KC, which focuses on utility equipment used in semiconductor and display processes and subsidiary management, established KC Investment Partners.