Philoptics Raises Its Profile with Next-Generation Semiconductor Process Equipment

Expectations for Supply After Development of Semiconductor Glass Substrate Equipment
Improvement Forecast for Display Equipment Sector Performance

As technologies such as artificial intelligence (AI) and autonomous driving rapidly advance, the demand for high-performance semiconductors is increasing. This is why the market capitalization of semiconductor equipment-related stocks is growing in the domestic stock market. Philoptics, which develops flexible organic light-emitting diode (OLED) manufacturing equipment, is preparing for mass production of semiconductor process equipment. The company has developed TGV (Through Glass Via) process equipment that creates fine electrode pathways on glass-based package substrates. With expectations that glass substrates will replace plastic substrates, Philoptics' stock price has reached an all-time high.

According to the financial investment industry on the 2nd, Philoptics' stock price has risen 140% since the beginning of this year. The stock price, which was below 10,000 KRW at the end of last year, rose to as high as 24,500 KRW during trading the previous day. It surpassed the previous high of 23,300 KRW recorded on July 13 last year after eight months. The market capitalization exceeded 500 billion KRW.

Earlier, at the end of last month, Philoptics supplied mass production equipment for TGV used in semiconductor packaging. Philoptics is the first to supply glass substrate manufacturing equipment for semiconductors to a mass production line.

Glass substrates are attracting attention as new material package substrates that can contribute to heat dissipation characteristics and improved power efficiency in the semiconductor post-process (packaging) stage. They are evaluated as suitable for implementing semiconductor packaging with smooth surfaces and ultra-fine line widths. Packaging semiconductors with glass substrates can increase data processing capacity while reducing power consumption. They are mainly expected to be applied to high-performance servers. Intel disclosed the development status of next-generation glass substrates in September last year. Global semiconductor companies, including Samsung Electronics, are aiming for mass production of glass substrates for semiconductors. Samsung Electro-Mechanics and SKC are also planning investments to enter the related market.

The TGV equipment supplied by Philoptics is a key process device that forms fine electrode pathways on glass substrates. The glass formed is very thin and delicate, requiring high precision. The electrode pathways are channels for connection terminals that facilitate electrical flow. The technological barrier lies in creating fine holes on the glass substrate without cracks using lasers during TGV formation. Philoptics began developing TGV equipment in 2019.

Han Kisu, CEO of Philoptics, said at the regular shareholders' meeting on the 28th of last month, "The semiconductor glass substrate manufacturing equipment received positive evaluations from customers' next-generation process lines," adding, "We have been selected as a core process equipment company."

While securing future growth engines, the display equipment division, the company's main business, is also expected to grow. Kwon Myungjun, a researcher at Yuanta Securities, explained, "The scale of investment by domestic and foreign display companies is expected to expand this year," adding, "Samsung Display and LG Display are planning OLED investments." He continued, "In May last year, Philoptics signed a display manufacturing equipment supply contract worth 63 billion KRW with Samsung Display," and added, "This is part of the total investment scale, and additional investments are also expected."