Company expects double digit growth from chip kit supply
Wonik IPS is always open to mergers and acquisitions (M&A) and the company will need to secure additional processes to compete with world-class companies, a company executive told TheElec on Thursday.
The executive, who was speaking after Wonik IPS’ shareholders’ meeting, said while it wasn’t reviewing any M&A candidates at the time the company’s basic position was that it was always an option. Wonik IPS itself grew threw mergers of other companies, they stressed.
The comments come after Wonik IPS’ talk to buy the display equipment business unit of Semes for 82 billion won failed. The pair negotiated for over six months in that deal.
The most important part of the deal was receiving the know-how from Semes staff but a less number of employees than expected from Semes agreed to transfer to Wonik IPS, the executive said.
There was no argument in terms price or transfer of technology, they said.
Last week, Wonik IPS said Semes sent requests to stop the talks as it couldn’t meet the terms of transferring staff.
Display equipment accounts for 40% of Wonik IPS’ sales. The company focuses on etching equipment. Its main goal from acquiring Semes’ display unit was to secure equipment for photo and wet processes. These processes require trained staff to operate. The display unit of Semes records around 100 billion won in sales a year and has 80 people working there, people familiar with the matter said.
Meanwhile, Wonik IPS is expecting double digital growth this year. Its display equipment business will contract up to 25% but the semiconductor equipment unit will grow by up to 30%, the company executive said. Growth in its semiconductor business will be more than enough to offset decline in its display equipment business, they said.
Last year, Wonik IPS recorded 1.09 trillion won in sales __ display equipment contributed 450 billion won and semiconductor 640 billion won. Th firm is aiming for a sales of 1.19 trillion won, with the semiconductor business contributing around 830 billion won of that. The company also recorded 140.5 billion won in operating income in 2020, a jump of 242.% year-on-year.
At the shareholders’ meeting, Wonik IPS also named its display unit president Jeong Hwan-kyeong as a new inside director. Jeong previously worked at liquid crystal display (LCD) business units of Samsung Electronics and Samsung Display.