[IPO] Samyang NChem "Leap to Become a Leading Global Semiconductor Core Materials Company"

On the 6th, Jeong Hoi-sik, CEO of Samyang NC Chem, held a press conference in Yeouido, Seoul, attended by key executives, where he revealed the company's core competencies and future growth strategies for listing on the KOSDAQ market. Provided by Samyang NC Chem.

"Samyang NChem will leap forward as a leading company in the advanced semiconductor materials market based on technological advancement and business expansion."

On the 6th, Jeong Hoi-sik, CEO of Samyang NChem, the largest domestic semiconductor photoresist (PR) material specialist, held a press briefing in Yeouido, Seoul, attended by key executives, revealing the company's core competitiveness and future growth strategies for listing on the KOSDAQ market.

Founded in 2008, Samyang NChem is a specialized company in core materials for semiconductor photoresists (PR). In 2015, it became the first domestic company to localize KrF polymers for semiconductor PR. In 2017, it completed the largest semiconductor material production plant in Korea, demonstrating advanced material development and manufacturing capabilities. Since 2018, it has exported PR materials to leading global companies in Japan and the United States, entering the global market.

The company is growing based on its unique competitiveness within the semiconductor materials industry. Through core technologies including synthesis, polymerization, and purification, it has succeeded in developing and mass-producing PR polymers and PAGs, enabling stable supply of high-purity (over 99.9%) materials. In particular, its metal impurity (ppb level) control technology is evaluated as world-class. Utilizing high-performance analytical equipment for quality data management and the LIMS system, the company enforces strict quality control throughout all processes. This product competitiveness is a core strength that allows the company to maintain cooperative relationships with major semiconductor manufacturers worldwide and continuously expand its global references.

As a policy for sustainable growth, the company has proactively invested in strengthening production capacity. Currently, the company produces PR polymers, PAGs, and wet chemicals mainly at its Jeongan and Tancheon plants. As of 2023, it has secured production capacities of 240 tons for PR polymers, 20 tons for PAGs, and 2,400 tons for wet chemicals. This production capacity is the largest in Korea and serves as a key factor securing competitive advantage in the market by meeting diverse customer demands and enabling rapid product development and mass production transition.

Based on differentiated competitiveness compared to other companies, the company achieved sales of 98.6 billion KRW last year, maintaining an average annual growth rate of 17.3% over the past three years. As of the cumulative third quarter this year, it recorded sales of 81.2 billion KRW and operating profit of 8 billion KRW, achieving an operating margin of 10%, continuing its high growth trend.

The company plans to strengthen existing business capabilities by diversifying customers through the advancement of cash cow products KrF and ArF, and to lay the foundation for sustainable growth by expanding into new business areas such as entering the EUV photoresist market and developing polymer materials for HBM.

Through the advancement of KrF and ArF products, the company is pursuing customer diversification and product portfolio expansion. For KrF polymer products, it plans to expand sales toward NAND in response to increasing semiconductor demand and strengthen cooperation with existing customers. Simultaneously, by developing high-end products, it aims to actively secure new global customers and increase the proportion of new customers to 50% by 2030.

Additionally, the company plans to diversify its product lineup from the existing KrF polymer-centered sales structure to include ArF polymers, EUV polymers, and BUMP polymers, thereby strengthening its portfolio. This business will be conducted in cooperation with global customers, gradually expanding market share and solidifying its position as a global PR company based on domestic manufacturing.

While strengthening existing business areas, the company is diversifying growth engines by entering new business fields. First, as a policy to respond to the rapid increase in demand for high-performance semiconductors, it is promoting the development of materials for EUV (Extreme Ultraviolet) photoresists.

EUV is a next-generation lithography technology using extreme ultraviolet wavelengths. Compared to existing KrF and ArF light sources, it can implement more precise circuit patterns and is considered essential technology for semiconductor manufacturing processes below 7nm. Due to these technical features and market trends, demand for EUV photoresist materials is rapidly increasing, and accordingly, the demand for domestic localization of EUV photoresist materials is also growing. Currently, Japanese material companies monopolize the market, but the company is conducting material R&D in cooperation with key customers to respond to market demand. The company plans to strengthen its position in the next-generation semiconductor process technology market based on the realization of domestic localization of EUV photoresist materials.

While promoting localization of EUV photoresist materials, the company is also entering the HBM (High Bandwidth Memory) BUMP PR polymer market to establish a foothold for higher growth. HBM is a memory semiconductor that increases data processing speed and is mainly used in high-performance computing, artificial intelligence (AI), graphics cards, servers, data centers, supercomputers, and similar fields. Since 2020, the company has been collaborating with domestic customers to develop HBM BUMP PR polymers and plans to develop bump polymer products for next-generation HBM3E and HBM4 through its advanced material development capabilities.

The company plans to use the funds raised through this listing to improve financial soundness by repaying borrowings and investing in production facilities. In particular, it is developing high-end semiconductor PR products such as EUV PR polymers and PAGs, and HBM BUMP polymers, and upon completion of product development, plans to establish an efficient mass production system through necessary facility investments.

Jeong Hoi-sik, CEO of Samyang NChem, stated, "As the largest domestic semiconductor PR material specialist, the company is developing next-generation semiconductor core materials such as EUV and HBM BUMP polymers. After listing, the company will contribute to the sustainable growth of the semiconductor industry through innovative material development aligned with market demand."

Meanwhile, Samyang NChem plans to offer 1.1 million shares in this listing. The expected offering price is between 16,000 and 18,000 KRW per share, with a total offering amount of 17.6 to 19.8 billion KRW. The demand forecast will be conducted over five days from January 6 to 10, 2025, followed by general subscription over two days on January 16 and 17. The company aims to list on KOSDAQ on February 3. KB Securities is the lead underwriter.