[Good Job SME]② Localization of Core Semiconductor Process Components, Competitiveness Lies in 'People'

Development of Total Solution for Mass Flow Rate with Proprietary Technology by MKP
Localization of Imported MFC... Achieving Technology Parity with Japan

In semiconductor manufacturing processes, precise supply of gases or liquids is essential. For example, when producing semiconductors or display panels, gases are used and their mass must be measured and controlled to prevent the effects of temperature and pressure. The component used for this is called a 'Mass Flow Controller (MFC).' Even minute errors can lead to defective products, making it one of the core technologies in semiconductor processes. MKP is a company that has localized this component, which was previously dependent on imports. MKP's headquarters in Hwaseong, Gyeonggi-do, houses both a manufacturing campus (factory) and a research institute.

On the 13th, Jeon Seok-hwan, CEO of MKP, said, "We have technology that can measure and precisely control the mass flow of gases and liquids in real time" and that "in terms of accuracy, response speed, and repeatability, we are at the same level as Japanese companies that dominate the global market." Established in 2016, MKP is developing total solutions related to mass flow with proprietary technology. To this end, 23% of its current workforce consists of research personnel. Over the past five years, the company has invested 5.7% of its sales in research and development (R&D). CEO Jeon stated, "The localization rate of components is 95%, and all processing is done 100% domestically," adding, "Global competitors in the US and Japan lack domestic R&D organizations, resulting in slow responses and complicated procedures, but MKP's ability to optimize for each customer is its competitive edge."

Jeon Seok-hwan, CEO of MKP, is explaining the real-time control technology of mass flow.

Initially, there were many difficulties. Since it is a core component in semiconductor processes, market entry itself was not easy. Changing components could easily cause defects. It took one to two years just to undergo evaluation. CEO Jeon said, "To be introduced into the process, verification must be passed, but even requesting evaluation was not easy." MKP believed that opportunities would eventually come since component replacement cycles are 3 to 5 years, and focused on technology development to break into this market. CEO Jeon explained, "MFCs are used not only in semiconductors but also in other fields like displays, and while there are several domestic companies making them, MKP is the only company with the technological capability to meet the standards required for semiconductor processes."

Through continuous R&D, MKP has increased its domestic market share from just 7% in 2016 to 14% currently. It supplies components to Samsung Electronics, SK Hynix, LG Display, and others. Sales have also grown from 4.7 billion KRW to 23.3 billion KRW last year, with an average annual growth rate exceeding 30%. The goal is to achieve 50 billion KRW in sales and a 50% domestic market share by 2025.

CEO Jeon sees 'people' as the driving force behind this success. This is why the company focuses on nurturing talent capable of leading innovation. When MKP was founded, it had fewer than 20 employees, but now the number has grown to about 100. Employees gather quarterly to share company management information. To foster understanding between departments, each department's goals and performance are also disclosed. 'Transparency' has been the strength that helped MKP and its employees overcome difficult times together. Despite challenges such as the semiconductor market downturn after the pandemic, the company internally provided support funds to employees up to eight times with the spirit of overcoming hardships together.

MKP Research Institute Equipment

Due to the nature of the technology handled, many employees learn at MKP and then move on to large corporations. It is almost considered a training ground for talent in this field. CEO Jeon said, "We aim to establish welfare systems comparable to large corporations," adding, "We will also focus on internal stabilization to retain our members."

CEO Jeon emphasized that for South Korea to become a true semiconductor powerhouse, localization of components and equipment is crucial. He stressed the need to create a foundation where domestic companies with technological capabilities can grow, rather than relying solely on imports. He said, "Although we talk about competitiveness in semiconductors and displays, the equipment used to make them often depends on imports," and added, "Attention must be paid to the importance of small and medium-sized enterprises responsible for materials, components, and equipment."