"As semiconductor circuits shrink to 2 nanometers, 1.5 nanometers, and 1 nanometer, controlling temperature, humidity, and contaminants becomes increasingly important. With major semiconductor companies seeking next-generation lithography equipment, we expect our temperature and humidity control device sales to grow," said Kim Sung-il, CEO of Melcon, during a press conference for the company's initial public offering (IPO) held at the 63 Building in Yeouido, Seoul, on September 22.
Founded in 2003, Melcon develops and supplies systems that control temperature and humidity during the photolithography process, which uses light to imprint circuit patterns on semiconductor materials. Its main products include ultra-precision temperature and humidity control devices (THC) and ultra-pure air supply systems (XPS). THC has been supplied to domestic integrated device manufacturers (IDMs) since 2004.
During the conference, Kim emphasized that Melcon's competitive edge lies in its technology. He noted that the company leads the market based on over 20 years of accumulated ultra-precision environmental control technology. Recently, Melcon achieved an average market share of 71% in the THC market over the past three years, and XPS was registered as a qualified supplier for ASML, the world's largest lithography equipment manufacturer, last year.
The boom in artificial intelligence (AI) data centers among hyperscalers is also a positive factor for Melcon's outlook. Kim stated, "The surge in demand for memory semiconductors due to the AI data center establishment boom is driving a massive increase in demand for related manufacturing equipment. As chips become increasingly miniaturized, the importance of environmental equipment that controls temperature and humidity in the manufacturing process will grow."
In fact, the share of EUV-related sales in Melcon's THC revenue has increased from 20.6% in 2023 to 32.6% in 2024, and 41.0% last year. Analysts predict that as EUV processes expand, sales will gain momentum.
Another advantage for Melcon is its robust service after equipment installation. The company has established a 24-hour contact network to provide preventive maintenance and troubleshooting support after installation.
Thanks to the semiconductor cycle, Melcon's performance has surged. The company recorded revenues of 25.1 billion won in 2024 and 41.8 billion won in 2025, with 22.1 billion won in the first half of this year. Operating profit is expected to rise from 400 million won in 2024 to 6.2 billion won in 2025, with 3.6 billion won recorded in the first half of 2026. The operating profit margin for the first half of the year reached around 16%.
To address concerns about revenue concentration, Melcon plans to diversify its customer base. Previously, there were worries about revenue being overly reliant on Samsung Electronics and SK Hynix. Kim noted, "We have started supplying products to Micron. Last year, we registered as a supplier for TSMC and are currently in the process of finalizing that. We are also in discussions with several other global semiconductor companies."
Melcon plans to enter new business areas based on its ultra-precision environmental control technology. Kim stated, "We will expand our business areas based on proven technologies in semiconductors, including ultra-low humidity control technology for secondary batteries, high-efficiency cooling and waste heat utilization technology for data centers, and temperature and humidity control technology for OLED displays."
The company is offering 2.5 million shares in its IPO, with a share price set between 10,700 and 12,300 won, totaling an expected fundraising amount of 26.8 billion to 30.8 billion won, and a projected market capitalization of 134.6 billion to 154.7 billion won.
Demand forecasting will take place until September 22, followed by general subscription on October 1-2, with a target listing on KOSDAQ set for November 15. Daishin Securities is the lead underwriter.
* This article has been translated by AI.
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