De-sinicisation trend of US customers ‘reflective benefit’
Supplies to global big tech companies one after another
Product diversification such products for AI servers ‘plays a part’
Capacity expa
Following communication equipment, ISU Petasys received a large number of orders for high Multi-LayerBoards(MLBs) used in data centers, significantly improving the company’s performance. The company recorded steady performance through the diversification of customers as well as the the reflective benefit from the continual de-Sinicization trend of US customers.
According to the industry on the 24th, ISU Petasys is expected to record 182.6 billion won in sales and 34.9 billion won in operating profit in the third quarter of this year.
ISU Petasys is the world’s No. 1 company for the high Multi-Layer Boards (MLB) market share. A high Multi-Layer Board refers to a multi-layer PCB board in which several boards are stacked. It is a high value-added product that connects layers electronically by forming fine patterns and holes. It is mainly installed in communication equipment semiconductors, servers, etc.
The core customers of ISU Petasys are mostly US IT companies. The recent growth ofISU Petasys performance is due to many global big tech companies that have started using ISU Petasys’ high MLBs. Korean companies have benefitted from American companies avoiding Chinese and Taiwanese substrate companies due to the influence of the US-China conflict.
Product lines are also diversifying. The sales that used to be concentrated on telecommunication equipment-oriented products in the past have spread out to servers, etc. Recently, the supply of high Multi-Layer Boards for high-speed computing AI servers has expanded.
Amid the atmosphere of slower growth in the overall market, it is expected for ISU Petasys to continue to grow steadily for the time being. The market conditions are also favorable. As data traffic increased because of covid-19 and the higher demand for non-face-to-face communication, the demand for high multi-layer PCBs for wire and wireless telecommunication devices have consistently expanded. As communication technology develops, the request for higher specified level of PCB also rose.
It is expected that even if investment in servers and communication equipment decreases due to the global economic slowdown, ISU Petasys will elicit growth through customer diversification.
It is also actively expanding the production capacity. In the middle of this month ISU Petasys officially announced an investment of 41 billion won in new facilities. The company will make facility investments to secure additional production capacity by the end of 2024.
The annual cumulative investment is estimated to reach 100 billion won, including the facility investment in the second quarter of the year. ISU Petasys made the largest investment this year.
Maximum performance is also predicted this year. It is expected to record 650 billion won and 118 billion won in annual sales based on consolidation this year.
Reporter Sora Park srpark@etnews.com