Sonics is soaring compared to its initial public offering (IPO) price on its first day of listing.
As of 9:23 a.m. on the 7th, Sonics was trading at 10,850 KRW, up 3,350 KRW (44.67%) from the IPO price of 7,500 KRW.
Sonics is a specialized RF filter foundry company that develops and mass-produces RF filters. RF filters are essential components in wireless communication systems that allow only the necessary wireless signals to pass through among various frequency bands during the transmission and reception of information.
In its early days after being established in 2000, Sonics manufactured Surface Acoustic Wave (SAW) filters. Since then, it has focused on technological advancement and secured core RF filter foundry technologies such as TF-SAW (Thin Film-SAW) original technology, wafer patterning technology, process technology, and RF measurement technology. Since 2017, Sonics has been jointly developing TF-SAW foundry technology with a leading U.S. communication semiconductor company and is the only company in Korea to possess 6-inch TF-SAW foundry manufacturing facilities and mass production technology.
Sonics received strategic investment from its client, Taiwan’s Tai-SAW Technology Co., Ltd., gaining recognition for its technological capabilities and product mass production capacity from global companies.
Sonics’ competitiveness lies not only in its RF filter foundry technology but also in its ability to maintain stable production. In 2021, it established a new fab foundry plant in the Hyeongok Industrial Complex, Pyeongtaek-si, Gyeonggi-do, enabling production of both 4-inch and 6-inch foundries. Stable supply through securing global clients is expected to drive sales growth in the future.
As Sonics is the only company in Korea capable of 6-inch TF-SAW filter foundry production, it plans to leap forward as a super-gap company in RF filter foundry through global next-generation technology.
By establishing comprehensive cooperative relationships with global top-tier companies, Sonics has secured high entry barriers compared to new competitors. Based on references supplying RF filter foundries to global companies in the U.S., China, Europe, and Taiwan, it is expected that its global market penetration will accelerate. Beyond its existing business areas, Sonics plans to expand new businesses by applying its technology to advanced industries such as autonomous driving, aerospace, and sensors, in addition to ‘5G & Beyond 5G communications.’
CEO Yang Hyung-guk said, "The relocation to Pyeongtaek in 2021 was for completing production facilities and customer approval periods until this year. Starting next year, major global clients are preparing for full-scale TF-SAW mass production, and expansion of mass production models is also under consideration, so significant sales growth is expected accordingly."
Choi Jong-kyung, a researcher at Heungkuk Securities, explained, "Sonics is a fully developed global RF filter foundry with cutting-edge foundry infrastructure, technology, global clients, and partnerships. Starting next year, it will enter a growth trajectory with the expansion of full-scale mass production for major clients."
Sonics projected sales targets of 64.9 billion KRW and 90.3 billion KRW for 2024 and 2025, respectively. Its sales forecast for this year is 18.2 billion KRW, which is more than three times the sales of the previous year. Sonics plans to use all funds raised from its IPO as facility capital to expand production capacity for its 4-inch and 6-inch foundry businesses.
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