A-Route announced on the 28th that following the acquisition of semiconductor equipment company 'NSRC', negotiations with related local governments regarding the recycling business are progressing smoothly, and a performance improvement centered on new businesses is expected this year. Although the sale of Woojin Electric has been somewhat delayed, investments in new businesses are proceeding as planned.
A-Route successfully entered the semiconductor equipment business by recently completing the acquisition of NSRC, a specialized company in power semiconductor lithography equipment. Lithography equipment is a core device applied in all semiconductor manufacturing processes, including power semiconductors. With the rapid growth of artificial intelligence (AI) and autonomous driving technologies, demand for power semiconductors that can maximize power efficiency is surging, indicating significant growth potential.
NSRC possesses outstanding semiconductor refurbished lithography equipment technology. Its sales growth rate over the past three years has reached 47%, with an operating profit margin exceeding 20%. Due to high demand for lithography equipment from global semiconductor fabrication plants (fabs), the company explains that A-Route’s investment will further boost performance growth.
The recycling business is also progressing smoothly. In August last year, A-Route established a specialized recycling subsidiary and signed a land purchase contract in Seosan City. It has already obtained the essential comprehensive waste recycling business license and building permits required for the project. After securing infrastructure such as factory construction and equipment procurement, high value-added recycling sales are expected to begin this year.
An A-Route official stated, “As the power semiconductor market rapidly grows, demand for lithography equipment is expected to continue expanding. Preparations for advancing the recycling new business have been completed, enabling swift new business development. We will reinvest the proceeds from the sale of Woojin Electric into operating high-margin new businesses to simultaneously increase sales and profits.”
He added, “Besides new businesses, we will focus on expanding overseas markets in our core industrial printer business and concentrate our efforts on increasing market share in the Xiaomi distribution business.”
A-Route is currently pursuing the sale of Woojin Electric, a comprehensive solution company in the electric power sector. With strong interest from potential buyers and expected order increases this year due to the semiconductor industry boom, the transaction is anticipated to conclude swiftly. A-Route plans to use the funds secured from the sale of Woojin Electric to strengthen growth momentum through new businesses.
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