Semes, the semiconductor and display equipment making subsidiary of Samsung Electronics, is expected to post over 2 trillion won in full year sales for 2020, the company CEO told TheElec.
Semes CEO Kang Chang-jin said the company has already surpassed the 2 trillion won mark as of end of October.
This year’s sales will be the company’s highest ever, Kang said in an interview. Sales in 2021 will also be strong, he said.
“Since we have sold some parts of our display business, how well we fill that vacuum will be the key to earnings,” he said.
Semes’ previous record in sales was the year 2017. It posted 2.03 trillion won in sales then, its highest every since the company’s founding in 1993.
The company saw sales dip from 2018 to 2019 __ from 1.86 trillion won to 1.13 trillion won. The decline was from the downturn in the global memory market.
Semes’ high earnings this year is due to its parent company Samsung Electronics expanding its investment in to facilities.
Semes benefited from Samsung’s expansion of its second factory line at Xi’an, China and second factory line at Pyeongtaek.
The equipment maker’s main offering is its cleaner and etching kit but it likely saw sales rise for over head transports as well.
In its third quarter conference call, Samsung said it expected to increase investment in facilities next year compared to this year, which will also likely boost Semes’ earnings.
In August, Semes sold most of its display equipment business __ exclusing inkjet printing __ to Wonik IPS for 82 billion won.