Applied Materials (AMAT), the world's largest semiconductor equipment manufacturer, has reportedly requested supply from New Power Plasma through 2028. This move is seen as a response to the increased investments by Samsung Electronics and SK Hynix in semiconductor manufacturing, prompting equipment makers to secure essential plasma components.
According to investment banking sources on July 3, AMAT has recently asked New Power Plasma to expand production to secure supply for 2027 and 2028. Domestic semiconductor equipment company Wonik IPS has also placed substantial orders in May, effectively requesting a year's worth of supply while demanding shorter delivery times.
The proactive procurement of critical components by semiconductor equipment manufacturers is attributed to the recovery of the semiconductor investment cycle. Samsung and SK Hynix are ramping up production capacities for next-generation DRAM and NAND flash, with new investments, such as the Yongin semiconductor cluster, becoming increasingly visible, leading to a rapid rise in demand for front-end equipment. Each additional unit of front-end equipment delivered also includes New Power Plasma's flagship product, the Remote Plasma Source (RPS).
RPS is a plasma device used to remove residual byproducts inside chambers during semiconductor deposition (ALD, CVD) and etching processes, making it essential for most ALD, CVD, and etching equipment. It is supplied with new equipment and generates stable revenue through repair and replacement demands every 2 to 3 years.
Analysts suggest that AMAT's increased supply from New Power Plasma is part of a supply chain diversification strategy. New Power Plasma holds approximately 30% market share in the global RPS market, ranking second after the U.S. company MKS. AMAT is reportedly expanding its reliance on New Power Plasma as it diversifies away from the MKS-centric supply structure.
This shift is also reflected in revenue structures. In the first quarter of this year, the share of revenue from the U.S. surpassed that from South Korea for the first time, reaching 37% compared to 36.7% from the domestic market. Industry experts attribute this change to the increased supply to AMAT.
In response to the rising orders, production systems are also evolving. Currently, production operates on a single shift during the week, but there are considerations for expanding shift work and outsourcing some modules. Analysts believe that due to the nature of the production process, increasing output will likely focus on optimizing workforce management and process efficiency rather than large-scale facility expansions.
The outlook for performance is positive. Investment banking sources project that New Power Plasma will achieve consolidated sales of 700 billion won and an operating profit of around 70 billion won this year. This represents increases of 21.1% and 143.9%, respectively, compared to last year's consolidated sales of 578 billion won and operating profit of 28.7 billion won. In the second quarter, expectations are for operating profits to exceed 20 billion won on a standalone basis and 30 billion won on a consolidated basis.
A representative from New Power Plasma stated, "It is difficult to provide an official position regarding supply strategies, including volume."
* This article has been translated by AI.
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