[Click eStock] "Edge Foundry, the Infrared Sensor Chosen by Hanwha Systems"

Hana Securities forecasted on the 14th that the absorption merger of Edge Foundry by Hanwha Intelligence will expand synergies with Hanwha Group affiliates.

Edge Foundry, established in 2006, develops and sells APS (Accelerator Pedal Sensor), BPS (Brake Pedal Sensor), SLS (Stop Lamp Switch), as well as infrared thermal imaging sensors and modules. The company's core competitiveness lies in the manufacturing technology of infrared thermal imaging sensors used in military weapons.

In February 2021, Edge Foundry signed an MOU with Hanwha Systems for the internalization of uncooled thermal imaging sensors used in military and defense industries and joint research on autonomous driving NVS (Night Vision System). Subsequently, in September of the same year, Hanwha Intelligence (Hanwha Systems 51%, Edge Foundry 49%) was established to formalize the cooperation.

Choi Jae-ho, a researcher at Hana Securities, evaluated, "Edge Foundry is intensifying the development of sensors for military and defense use through cooperation with Hanwha Systems." In November 2021, Park Kyung-sik, head of accounting team 1 at Hanwha Systems, was appointed as auditor, and in January 2024, Park Hyuk, head of surveillance and reconnaissance at Hanwha Systems, joined as an inside director, advancing the development of defense sensors for army, navy, and air force surveillance and reconnaissance activities. Currently, the CEO of Edge Foundry is Lee Yong-wook, team leader of the Future Technology Business Division at Hanwha Systems.

On December 6 last year, Edge Foundry decided to absorb and merge Hanwha Intelligence at a ratio of 1 to 13. Hanwha Systems was allocated approximately 6.86 million new shares from the merger, becoming the second-largest shareholder of Edge Foundry (about 8.9%).

Researcher Choi analyzed, "Looking at Hanwha Systems' investments in other companies, Hanwha Intelligence is the only controlled corporation excluding simple investment purposes, confirming the importance of Edge Foundry's infrared thermal imaging sensor manufacturing technology."

After the merger, Edge Foundry is expected to internalize infrared thermal imaging sensor technology based on its core technology, expand applied products, and secure global competitiveness. In particular, infrared sensors can be used not only in the defense industry but also in various fields such as satellites and celestial observation, which is expected to enhance synergies with Hanwha Group affiliates such as Hanwha Aerospace and Hanwha Systems.

According to Global Information, the global infrared sensor market size is expected to grow from $1.19 billion this year to $1.69 billion by 2030, with a compound annual growth rate (CAGR) of 7.2%. Infrared sensors detect heat radiated from objects and are used in environments where visual confirmation is difficult, such as at night or in smoke. This market is oligopolized by a few companies securing core technologies, such as France's Lynred and the U.S.'s FLIR Systems.

Edge Foundry is developing uncooled infrared sensors applicable not only to military rifles but also to civilian markets such as battlefields, drones, and robots. Researcher Choi said, "Edge Foundry has completed the development of low-cost uncooled infrared sensor products at the QVGA level (320x240) and is currently mass-producing them," adding, "They have established a one-stop solution system from sensor design to mass production and simplified the process to six steps (compared to 10 steps by other companies), reducing production costs and securing price competitiveness."

Currently, other companies supply cooled infrared sensors for military use domestically, but Edge Foundry's products use an uncooled method, making them applicable to night surveillance equipment, perimeter security, and aiming devices for military personal and general firearms. Regarding this, Researcher Choi predicted, "Since the application areas differ from existing cooled sensors within the defense industry, Edge Foundry can have differentiated competitiveness."