[Click eStock] "Neotis, Korea's Only PCB Drill Bit Manufacturer... Structural Growth in the AI Era"

On January 22, independent research firm GL Research analyzed that Neotis is entering a phase of structural growth alongside the proliferation of artificial intelligence (AI).

Park Changyun, a researcher at GL Research, evaluated, "Neotis is a direct beneficiary of the expansion of high-layer and high-density PCBs driven by increasing semiconductor and server demand in the AI era."

Founded in 2000 and listed on KOSDAQ in 2007, Neotis primarily manufactures and sells microbits for PCB processing and motor shafts for automobiles. In 2021, the company added the lens polishing machine business by acquiring Gwangjin Precision as a subsidiary. Notably, Neotis is the only domestic manufacturer in the field of micro drill bits for PCB processing, maintaining the top domestic market share by securing many local PCB companies as clients.

Researcher Park Changyun explained, "Recently, the PCB market has entered a phase of structural growth due to increased demand for high-performance semiconductors fueled by AI proliferation. Semiconductors for AI require high-layer and high-density PCBs, which has significantly highlighted the importance of via hole processing." As PCBs become more multi-layered, the size of the substrate and the number of holes increase, making processing much more difficult. Since drill breakage and wear management are directly linked to yield, the importance of micro drills is growing further.

Microbits are ultra-precision cutting tools essential for via hole processing to connect PCB circuits. In particular, micro drills are core consumables for high-spec PCBs used in AI and servers, and demand for these high-end products is rapidly increasing. Researcher Park stated, "In the area of multi-layer substrates, where laser processing is limited, mechanical drilling is essential. The spread of high-layer PCBs for AI and servers will lead to a structural increase in demand for micro drills."

Neotis is responding to this rising demand by expanding its microbit production capacity. The effects of this expansion are expected to be reflected in performance from early 2026, with additional phased expansions planned throughout the year. Park analyzed, "With increased production capacity, a higher proportion of high-value-added products, and the effect of increased ASP, the visibility of sales growth is improving."

Technological competitiveness is also cited as a strength. Through the development of coated bits, Neotis has structurally alleviated issues of drill breakage and wear compared to conventional products. As a result, both the usage of drills per client and the proportion of high-priced products are increasing simultaneously.

Researcher Park commented, "As PCBs become more high-layered and high-density, the speed of quality control and technical response becomes increasingly important. The company possesses strong price competitiveness over global rivals based on fast delivery, rapid sample response, and stable quality." Based on this, the company is not only expanding its share among existing clients but is also about to secure new MLB customers.

Meanwhile, Neotis's other core business, automotive motor shafts, continues to deliver stable results. Motor shafts are key components used in various automotive drive systems such as power windows, gear reducers, sunroofs, and seats. Neotis produces high-durability shafts using high-precision whirling processing technology and holds about a 30% share of the global sunroof motor shaft market.

Researcher Park stated, "The shaft division maintains stable sales flow based on growing demand for automotive motor shafts. From 2025, the electronics division is being nurtured as a foundational business for mid- to long-term growth."

The growth momentum through its subsidiary Gwangjin Precision is also noteworthy. Neotis entered the lens polishing machine business by acquiring a 50% stake in Gwangjin Precision in 2021. Gwangjin Precision produces equipment for high-precision processing and polishing of optical lenses and glass components, initially focusing on optical lenses and glass polishing equipment for big tech smartwatches. Subsequently, by expanding to shaped lenses for automotive mobility clients, the company entered the automotive lens market.

Researcher Park explained, "Although sales declined until 2024 due to the slowdown in the Chinese economy, the company entered a turnaround phase from 2025 as demand for automotive optical lenses increased with the spread of autonomous driving and ADAS." Major clients are Chinese automotive companies, and the company plans to strengthen growth momentum by diversifying its customer base into emerging markets such as India and Vietnam. He added, "If performance visibility is secured in new markets, there is also potential for Gwangjin Precision to resume its IPO plans."