UPDATED. 2024-07-19 07:49 (금)
Baco Solution surprises with own PVD in global market
Baco Solution surprises with own PVD in global market
  • JY Han
  • 승인 2023.11.10 15:36
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PVD maker wins overseas customer for 1st time
Baco Solution CEO Lee Hyun-jong Image: Baco Solution
Baco Solution CEO Lee Hyun-jong Image: Baco Solution

South Korean fab equipment maker Baco Solution won its first order from a customer based overseas for its physical vapor deposition (PVD) equipment, TheElec has learned.

The company won an order from a power management IC maker and had competed with fab equipment maker Applied Materials during the bidding process, sources said.

Baco Solution won by offering its kits at competitive prices and its ability to offer customized solutions, they added.

Baco Solution CEO Lee Hyun-jong said its customer is expected to buy dozens of units of PVD equipment, which means the successful supply of the first unit will likely be followed up with more orders and higher revenue growth.

PVD uses physical force to deposit a target onto the wafer in a vacuum. The process is also called sputtering. 

Applied Materials is the dominant company in the sector and in South Korea only some equipment makers have provided PVD equipment but mostly for display panel production and not wafer fabrication.

Lee previously worked as a PVD engineer at Varian Semiconductor Equipment Associates (which was acquired by Applied Materials in 2011).

He formed Baco Solution in 2013 and began supplying PVD equipment to South Korean companies, starting with Nepes in 2016 and later LB Semicon and Hana Micron.

Lee said that its equipment was priced at 50% to 60% of its competitors while being level or better in performance.

Its South Korean customers only bought PVD from Baco Solution for their wafer-level package and display driver IC processes, the CEO said.

Baco Solution also designs its own backbone equipment instead of procuring it from suppliers such as Brooks Automation.

Lee explained that its competitive prices result in its high operating margin. Baco Solution last year recorded 9.8 billion won in revenue and 2.6 billion won in operating income, or a margin rate of 26.5%. It expects revenue of up to 14 billion won this year.

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