SEMES to Establish R&D Center in Hwasung

Apr 20, 2016

SEMES, which is Samsung Group’s affiliate in display equipment, is building a R&D center in Hwasung. It is unusual for a South Korean equipment provider to build its R&D center and this is its attempt to launch itself as a top 5 equipment business in the world.

According to an industry on the 19th, SEMES is going to use Samsung Heavy Industries. Co., Ltd.’s company building, which is a 6th story building in Hwasung, as its R&D center. SEMES bought this land and the building for $27.5 million (31 billion KRW). When leasing is finished in this coming October, SEMES is going to remodel part of the building and use it as R&D center.

SEMES Headquarters is in Cheonan. Because it is located far away from metropolitan areas, it was difficult for SEMES to hire top-notch R&D employees. “Our sales passed $888 million (1 trillion KRW) last year. Investments in R&D are must to continue to grow in the future.” said a representative for SEMES. “Current employees and new employees for R&D will work at this R&D center in Hwasung.”

If this R&D center is established, SEMES will be able to work more closely with Samsung Electronics’ Semiconductor Business Department, which is its biggest customer.

“It is heard that SEMES set an internal vision to become a top 5 equipment business in the world by increasing its sales by three times within couple years.” said a representative for this industry. “It is going to secure competitive edge in equipment by hiring excellent employees and is going to grow based on this.”

Panoramic view of SEMES Headquarters in Cheonan
<Panoramic view of SEMES Headquarters in Cheonan >

SEMES started off as Korea DNS, which was a joint-company of Samsung Electronics and Japan’s DNS (Dainippon Screen), in January of 1993 and changed its company name to SEMES in 2005. Samsung Electronics bought 21.75% of SEMES’ shares that DNS possessed for $46.3 million (52.2 billion KRW) in October of 2010 and incorporated SEMES as its complete affiliate. Samsung Electronics currently has 91.54% shares of SEMES. Samsung Electronics merged SEMES with SECRON and GES, which are its other affiliates in equipment, in January of 2013 and SEMES has become a comprehensive equipment business that has both front-end and back-end semiconductor equipment and display equipment. Sales and operating profit for SEMES in last year were $993 million (1.1189 trillion KRW) and $79.4 (89.4 billion KRW) respectively.

Major front-end process equipment of SEMES are track equipment called LOZIS for semiconductor photo process, cleaning equipment called BLUEICE and IRIS, etching equipment called Michelan OX and others. Major back-end process equipment of SEMES are Die Bonder, Probe Station, Test Handler and others. SEMES is distinguishing itself in display equipment with its coater equipment that is responsible for coating application, desiccation, and development processes.

Staff Reporter Han, Juyeop | powerusr@etnews.com

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