Seoul Semiconductor's announcement of mass production for its new ultra-small white light-emitting diode (LED) chip technology, WICOP3, which does not require rare earth materials, has led to a significant surge in its stock price.
As of 9:10 a.m. on October 29, the Korea Exchange reported that Seoul Semiconductor's shares rose by 29.93% (2,580 won) to 11,200 won, marking three consecutive days of gains since October 27.
The surge is attributed to the news that Seoul Semiconductor, in collaboration with its subsidiary Seoul BioSys, will begin mass production of the WICOP3 technology in the fourth quarter of this year.
Traditional white LEDs utilize blue LED chips combined with phosphors containing rare earth elements to produce white light. In contrast, the newly developed WICOP3 can emit white light directly from the chip itself without the need for additional phosphors or packaging processes.
Seoul BioSys explained that eliminating the need for rare earth materials and packaging can reduce manufacturing costs to half that of existing products. The company also noted that this approach minimizes the use of plastics and silicone resins, thereby reducing environmental impact.
Seoul BioSys and Seoul Semiconductor plan to ramp up production of WICOP3 starting in the fourth quarter and expand product supply primarily to existing customers. They also aim to secure partners in the augmented reality display and AI optical communication sectors to explore new markets.
Rare earth elements are widely used in various industries, including LEDs, semiconductors, electric vehicles, fighter jet engines, missile guidance systems, radar systems, and night vision devices, earning them the nickname 'vitamins of the industry.' According to a report by KDB Future Strategy Research Institute, China accounts for approximately 69% of global rare earth mining and holds over 90% of the market in separation, refining, and post-processing.
* This article has been translated by AI.
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