The Only Domestic Dry Vacuum Pump Manufacturer Based on Vacuum Technology
Expanding into Semiconductor, Solar Power, and Secondary Battery Fields
On the 12th, at the headquarters of LOT Vacuum located in Osan, Gyeonggi Province. The first-floor production facility of the headquarters, built on an area of 14,360 pyeong, was lined with numerous parts and products.
LOT Vacuum, visited for an investor relations (IR) meeting hosted by the KOSDAQ Association, has recently been experiencing a happy dilemma. Due to the growth of the solar power industry, the factory's operating rate sometimes exceeds 100% depending on the month. Expectations for next year are especially high. Jin-Hong Park, Vice President of LOT Vacuum, said, "Next year, with the continued strong sales in solar power and the addition of semiconductors, achieving even higher performance will be possible."
LOT Vacuum is the only domestic company that manufactures and sells dry vacuum pumps based on vacuum technology. It plays a role in creating the vacuum environment necessary for semiconductor processes and others. Established in 2002, LOT Vacuum entered the KOSDAQ market in 2005. In the first half of this year, it recorded sales of 232.2 billion KRW and operating profit of 29.3 billion KRW, increases of 45.8% and 162.5% respectively compared to the same period last year. Notably, operating profit nearly reached last year's level (29.8 billion KRW).
The strength of LOT Vacuum lies in its stable sales. Due to the nature of equipment companies, sales tend to decline with each investment cycle. However, LOT Vacuum has diversified its business areas into semiconductors, displays, solar power, and secondary batteries, reducing sales gaps. Additionally, periodic maintenance and replacement demands arise. Sales increased from 150.2 billion KRW in 2019 to 374.2 billion KRW last year.
The sector where LOT Vacuum is currently thriving is solar power. In the first half of this year’s performance, the solar power sector accounted for more than half of total sales, amounting to 122 billion KRW. A similar or higher sales proportion is expected in the second half. Jin-Seop Kim, Executive Director, said, "We are continuously increasing production, but it is difficult to meet demand," adding, "We expect demand next year to be at this year’s level or higher."
Although it has recently slowed down, semiconductors remain a promising field. LOT Vacuum’s vacuum pumps are used from the front-end to the back-end processes. With semiconductor investments expected to increase again from next year, benefits are anticipated. The Semiconductor Equipment and Materials International (SEMI) forecasts that global fab equipment investment will increase by 15% next year to reach 97 billion USD compared to this year. It is expected that semiconductor inventory adjustments will conclude and demand will rise in high-performance computing (HPC) and memory sectors. With the possibility of diversifying customers, sales may increase further. Jong-Seok Park, Executive Director, explained, "According to global semiconductor investment plans, the scale of facility investments in the US, Europe, and Japan is growing," adding, "There is also high expectation for orders from domestic semiconductor companies’ investments."
Secondary batteries are also a promising field. Recently, as the global secondary battery market has rapidly grown, facility investments have increased. In particular, due to the rise in eco-friendly demand, the application of vacuum pumps in secondary battery processes is expanding.
LOT Vacuum plans to continue growth through steady research and development. Ho-Sik Kim, Vice Chairman of LOT Vacuum, emphasized, "In the past, we only supplied products to the semiconductor sector, but now we have diversified into solar power, displays, and secondary batteries, and the effects are showing," adding, "We will strive to deliver good results."
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