South Korean equipment makers posted mixed results in the second quarter.
Fab equipment makers recorded strong earnings during the quarter, while display equipment makers posted poor performances.
Multiple fab equipment makers recorded triple digit growths and marked record earnings in the second quarter.
TheElec analyzed earnings of 49 equipment makers __ ten of them posted over 100 billion won in sales during the quarter.
These companies are: Semes, Wonik IPS, SFA, Top Engineering, KC, AP Systems, PSK, EO Technics, Hanmi Semiconductor and TES.
Semes, a subsidiary of Samsung Electronics, recorded the highest sales during the quarter out of all companies.
The firm posted 1 trillion won in sales, an increase of 57.9% year-on-year.
Operating income during the quarter was 128.3 billion won, an increase of 7.6% from a year ago.
Wonik IPS posted 432.5 billion won in sales and 100.7 billion won in operating income during the second quarter, an increase of 42.6% and 96.7%, respectively, from a year ago.
The company’s semiconductor business saw sales increase 40% year-on-year to 367.8 billion won during the quarter.
Display equipment maker Top Engineering recorded 252.2 billion won in sales but posted an operating loss. This was due to its affiliate Powerlogics __ which supplies camera modules to Samsung __ recording low earnings.
Laser display equipment maker AP Systems posted 145.7 billion won in revenue and 16.2 billion won in operating income during the quarter, an increase of 13.4% and 84.1%, respectively, from a year ago.
Photoresist cleaner maker PSK posted 125.7 billion won in sales, an increase of 93.7% year-on-year. Operating income surged 305% from a year ago to 31.6 billion won.
Semiconductor back-end equipment maker Hanmi Semiconductor reported 108.9 billion won in sales and 36.4 billion won in operating income, an increase of 75.9% and 82%, respectively, from a year ago. The company saw high demand from increased spending by foundry companies.
Companies that recorded triple digit growth from a year ago are: YIK, New Power Plasma, Jusung Engineering, Interflex, Exicon.
Avaco, Genesem and Exicon also returned to profitability during the quarter from a year ago.
Companies that turned to the red are: Top Engineering, Philoptics, HB Technology, Toptec, Charm Engineering, Unitest, YEST, LIS, FNS Tech, HIMS, Finetek, Youngwoo DSP and YAS.
Samsung’s increased spending on its P2 line at its Pyeongtaek chip plant boosted earnings of the fab equipment makers.
SK Hynix is also spending on its fabs earlier than planned, which is boosting equipment demand.
Display equipment makers are suffering from low demand from Samsung Display and LG Display.
LG Display earlier this month did announce a new 3.3 trillion won spending plan but it has been conservative in overall spending throughout the past couple of years.
Chinese panel makers are also postponing their spending plan due to the pandemic.