[Click eStock] "TMC, Beneficiary if Specialty Gas Prices Surge Due to Global Geopolitical Risks"

Independent research firm Valuefinder analyzed on the 26th that if global geopolitical risks arise, the price of specialty gases could skyrocket, potentially benefiting TIEMC.

TIEMC, established in 2015 and listed on the KOSDAQ market in 2023, is a company specializing in specialty gases for semiconductor processes. It possesses all the necessary synthesis, refining, and mixing technologies required for specialty gas manufacturing and has localized high-purity specialty gases such as neon (Ne), diborane, and CO through national projects and collaboration with integrated device manufacturers (IDMs).

Its major customers include SK Hynix (60%), Samsung Electronics (10%), Micron (5%), and Kioxia, with sales comprising 60% NAND and 30% DRAM. Key subsidiaries include TIEMCCNS, which manufactures semiconductor and secondary battery equipment, and its grandchild company YHT, an EV battery inspection equipment firm.

Researcher Lee Choong-heon of Valuefinder stated, “Recently, with China expanding its dual circulation policy and NAND suppliers in the U.S. raising prices in April, expectations for a semiconductor market recovery are rising. As NAND advances to higher layers and DRAM undergoes extreme miniaturization, the usage of semiconductor specialty gases is steadily increasing. However, due to high global import dependence and ongoing supply instability, the need for localization of specialty gases has become more prominent.”

Rare gases are specialty gases obtained from toxic gases of aging steel mills, and their supply becomes unstable and prices surge during international conflicts. During the past Russia-Ukraine war, supply instability of specialty gases escalated due to resource weaponization, with neon prices soaring 55-fold.

Since 2017, TIEMC has secured neon separation and refining technology and, in 2022, developed high-purity neon production facilities together with POSCO. It is analyzed that if global geopolitical risks expand and specialty gas prices surge, TIEMC could benefit.

The researcher explained, “Last year, we completed the 3rd plant focusing on CO gas production, expanded the 2nd plant producing diborane at Samsung Electronics’ request, and are pushing forward with establishing a new plant near the Yongin semiconductor cluster by 2027 as proactive measures to expand production capacity (CAPA).”

He also added, “Although legal disputes with competitors are ongoing, we maintain that there is no technology infringement as the diborane production methods differ. Furthermore, while the recent decrease in POSCO Technology Investment’s shareholding might be viewed negatively, specialty gases require at least a one-year verification period to pass quality tests, and the collaboration with POSCO has created a high technological entry barrier.”