[Semicon Korea 2019 Exhibitor]
DSTECHNO, a company specialized in quartz glass (quartz) and silicon (Si) parts (Ware) used in the semiconductor production process, is expected to complete the construction of Deokpyung, a new plant in Icheon city in June this year. The company will spend about 46 billion won to build the new plant. When the factory is completed, the theoretical production capacity of DSTECHNO will be tripled. It is expected to contribute to the earnings growth.
Kim Hyung-mo, CEO of DSTECHNO, said, "When the new plant becomes fully operational, the sales revenue will be about 200 billion won, and the sales and margin indicators are expected to improve further as the new plant will be prepared to increase market demand and gradually integrate the existing production infrastructure."
The new Deokpyung factory adopts a smart factory concept to increase productivity by 30%. DSTECHNO currently operates five business sites (including factories and research institutes) in Gyeonggi Province, Gangwon Province, and Chungbuk Province. In particular, CEO Kim explained that the next-generation quartz product line is being developed at Kangwon Munmak Research Center. DSTECHNO recorded sales of 51 billion won in 2017. It is a 42% increase from the previous year.
Quartz parts, the main source of revenue for DSTECHNO, are used as containers for protecting or transporting wafers from impurities during etching and diffusion processes in the semiconductor manufacturing process. DSTECHNO is one of the major semiconductor quartz parts suppliers in Korea. The company supplies quartz parts to major semiconductor manufacturers as well as equipment manufacturers.
CEO Kim said, "Quartz requires a high degree of machining and high-temperature processing. The ability of the machining engineer greatly affects the reliability and completeness of the product. DSTECHNO with its 30-year-business experience has numerous engineers in the field, which is the core competitive edge.” According to CEO Kim, among the 124 employees of DSTECHNO, there are about 50 professional engineers.
DSTECHNO has succeeded in developing a high purity quartz ingot, the raw material, for the first time in Korea in 2015. It is a result of investing 7 billion won from 2011 to the end of 2014. As a result, it is considered to have surpassed the limits of the business structure of import and distribution.
DSTECHNO is developing quartz and silicon processed products as well as chemical vapor deposition (CVD) silicon carbide (SiC) processed products as new growth engines. After the evaluation by the major customers, it has entered the stage of mass production and sales. DSTECHNO has invested heavily in facility investment and research and development (R & D) for the past five years to mass produce CVD SiC workpieces. The use of CVD materials has recently been widespread in major semiconductor production processes due to less wear caused by plasma.
"We have set a long-term vision of achieving 1 trillion won in sales and 250 billion won in operating profit in 2030," said CEO Kim. "We will continue to grow by launching innovative products and will become a global company."