[Click eStock] "iTec, Korea's Only AI Semiconductor Chip Test House"

Independent research firm ValueFinder analyzed on the 19th that ITEC is the only AI semiconductor chip test house in Korea, and its cash holdings of 110 billion KRW add to its stability.

ITEC, established in 2005 and listed on the KOSDAQ market in 2010, is a company specializing in the production and manufacturing of semiconductor testing. Semiconductor testing corresponds to the final stage in the manufacturing process. It determines whether semiconductor chips are good products and identifies which process has issues. The main business is system semiconductor testing (wafer/package/burn-in/SLT testing), which accounts for about 70% of the semiconductor market including memory semiconductors, with an annual production capacity of approximately 55 billion KRW based on sales.

Currently, it has secured more than 160 domestic and international customers. Major customers include fabless companies gaining attention recently such as Telechips, Dongwoon Anatech, Nextchip, Anapass, and LG Electronics, as well as design house companies like ASICLAND, AD Technology, and Gaonchips. Since 2020, sales offices have been established in the U.S., Taiwan, and China, and it is understood that collaborations are currently underway with two companies in the U.S., three in China, and one in Japan.

Researcher Lee Choongheon of ValueFinder stated, “To test AI semiconductors, the latest tester, the System Level TEST handler, is required. More than 80% of AI chip fabless companies worldwide, including NVIDIA, use the ‘V93K-PS5000’ for testing their AI chips,” adding, “In 2022, ITEC became the first domestic test house to introduce and operate two units of the ‘V93K-PS5000.’”

Additionally, due to the increasing demand for high-spec automotive semiconductors and AI semiconductors, it is understood that one more unit will be introduced this year, with plans to add up to five more units by 2026.

He further explained, “To test AI semiconductors with high power consumption, a handler with ATC (Auto Thermal Control) functionality is essential,” stating, “This is because severe heat is generated inside the chip due to high power consumption during testing or operation, and the handler needs to maintain a specific temperature to protect the chip from overheating.”

If the temperature is not continuously lowered below 125 degrees Celsius, the chip will crack. ITEC introduced a System Level TEST handler with ATC functionality in 2024 and is applying it to AI semiconductor mass production. Fabless startups designing AI currently do not have test engineer teams capable of developing test programs for AI semiconductors, so test engineering support that can develop test programs and verify the performance of initial chips is very important. ITEC has the advantage of over 20 years of experience developing various chip test programs.

He mentioned, “The importance of semiconductor testing for performance improvement will be highlighted in the system semiconductor industry, which is expected to grow rapidly, as well as in the automotive and autonomous driving semiconductor industries,” adding, “ITEC is likely to attract attention as the only AI semiconductor chip test company in Korea.”

He also analyzed, “Currently, ITEC is selling or reducing shares in major subsidiaries to secure cash, and it is expected to invest in semiconductor equipment purchases in the future,” noting, “ITEC sold its subsidiary Samsung Medicos for 31.9 billion KRW and currently holds 110 billion KRW in cash, which accounts for about 84% of the company’s market capitalization.”

He added, “Although it currently holds convertible bonds worth about 26.8 billion KRW, even if the put option is exercised, there is sufficient cash, so it is not considered a major concern.”