[Edaily Reporter Kwon Oh Seok] Independent research firm ValueFinder published a company report on ‘Taesung’ on the 19th, saying, ‘Taesung has secured an order backlog of more than about six times last year’s revenue, benefiting from higher capex by global substrate makers amid growing demand for AI server FC-BGA, and its new glass substrate and composite copper foil businesses will become mid- to long-term growth drivers.‘ The company is expected to handle orders and expand its new businesses on the back of its new Cheonan plant, which has about seven times its previous production capacity. No investment rating or target price was provided.

Founded in 2006 and listed on KOSDAQ in 2022, Taesung specialises in PCB manufacturing process equipment, developing and manufacturing PCB wet process equipment for developing, etching and stripping, as well as glass substrate and composite copper foil manufacturing equipment. It has about 50 customers at home and abroad, including LG Innotek and Samsung Electro-Mechanics. On a 1H26 basis, revenue breaks down into equipment 85.3%, services 8.6%, merchandise 3.2% and others 2.9%. As revenue recognition from existing orders picked up in earnest, 1H26 revenue came to KRW 50.4bn (+211% YoY) and operating profit to KRW 2.2bn (turning to profit).

ValueFinder analyst Lee Choong hun said, “As the AI semiconductor performance race extends to packaging, high-end FC-BGA is emerging as a supply bottleneck. In September, Samsung Electro-Mechanics decided on a total of KRW 6.78tn in package substrate capacity expansion in Sejong and Vietnam, and it is worth noting that this is demand-driven investment, with global customers funding part of the investment and mid- to long-term volumes already secured. Server FC-BGA is more than four times larger in area than standard PC FC-BGA and has 20 or more layers, so fewer units can be produced on the same equipment. Capex is therefore expected to continue, and Taesung, which supplies FC-BGA equipment, should benefit. With an order backlog of more than about six times last year’s revenue, the existing equipment business alone can support stable earnings growth. The portfolio is also expanding into high-value plating equipment, as seen in the letter of intent (LOI) received on September 28 from Simmtech for Via Fill VCP copper plating equipment for its SoCAMM mass-production line.”

He added, “For glass substrates, Taesung has developed equipment for multiple wet process steps, including cleaning, TGV etching, Cu via fill plating, developing, etching and stripping, which allows it to increase the number of tools supplied per customer line. Based on patents including non-contact conveyance technology, it has largely completed equipment specification talks with major substrate makers at home and abroad. Supply timing has slipped somewhat as customers‘ TGV process development and yield ramp-up have been delayed, but equipment supply is expected to follow in sequence once pilot lines and initial mass-production investments begin. In composite copper foil, it has achieved a 98% yield at a 1,400mm width using roll-to-roll (RTR) horizontal copper plating, has completed development of second-generation equipment with productivity of 10m per minute, and is in talks on volume supply with Korea’s three major battery makers and CATL. As a substantial portion of the new Cheonan plant‘s capacity is to be allocated to new-business lines, the earnings contribution from the new businesses is expected to grow gradually once initial orders are secured.”