HMNEX Acquires SMI, Supplier to SK hynix

HMNEX, a company specializing in LED technology, announced on May 7 that it has completed the payment of 26.5 billion KRW for the acquisition of a 91.15% stake in SMI, a company specializing in semiconductor deposition process LDS equipment supplied to SK hynix, thereby becoming the largest shareholder. This stake represents 100% of the shares excluding treasury stock.

SMI is a specialized company in semiconductor deposition process LDS (Liquid Chemical Delivery System) equipment. Last year, the company recorded sales of 25.9 billion KRW and an operating profit of 1.5 billion KRW. As a mid-sized materials, parts, and equipment supplier, more than 70% of its total sales are generated from supplying to SK hynix.

In particular, as SK hynix recently supplied the world’s first HBM4 12-layer sample, the sixth generation of high bandwidth memory (HBM), to Nvidia, SMI, which has been responsible for SK hynix’s deposition and cleaning process equipment for over 10 years, is also expected to benefit.

The HBM4 12-layer sample is evaluated as having the world’s highest level of speed required for AI memory.

Additionally, SMI succeeded in developing Korea’s first cell-type 'ozone water supply device (LIMPIO)' and supplied the first unit of the 'ozone water supply device' to SK hynix.

The 'ozone water supply device' is an alternative piece of equipment used to reduce toxic chemicals for removing ultra-fine scale defects in industries such as semiconductors, displays, and OLEDs. It is evaluated as being competitive in terms of price and performance, and also effective in improving ESG from an environmentally friendly perspective.

SMI has now completed development of five models of 'ozone water supply devices,' including those for semiconductors, LCDs, and high-concentration (sulfuric acid replacement) applications.

A representative from HMNEX stated, "This year, we expect to accelerate both the business expansion of LDS (Liquid Chemical Delivery System) equipment and the market entry of the ozone water supply device. In the long term, we plan to proceed with a merger with SMI and to solidify our position in the semiconductor sector, including AI semiconductors and fabless, through ongoing M&A activities."