The competition between Hanwha Semiconductor, which produces the core equipment 'TC bonder' used in artificial intelligence (AI) semiconductors, and HANMI Semiconductor is fierce. In particular, both corporations are engaged in a contest over the expected new order for TC bonders from SK hynix, the major client and global leader in the HBM market.
According to the semiconductor industry on the 14th, SK hynix is expected to place orders for TC bonders due to the increased production capacity resulting from the rising demand for HBM. Analysts say that the choice made by SK hynix could change the competitive landscape for both Hanwha Semiconductor and HANMI Semiconductor.
◇ Hanwha, 7th in the business world, vs. HANMI, a strong player in mid-tier semiconductor equipment
Hanwha Semiconductor is a subsidiary of Hanwha Group, with Kim Dong-sun, the third son of Chairman Kim Seung-yeon, participating in management. Kim joined as the head of future vision at Hanwha Semiconductor in February. Hanwha Semiconductor entered the TC bonder market as a latecomer in 2020 and currently focuses on manufacturing industrial equipment like chip mount machines and automatic lathes. Hanwha Vision holds 100% of its equity.
Kim presented a growth goal for becoming a 'comprehensive semiconductor manufacturing solutions corporation' after joining the management of Hanwha Semiconductor. He also declared a no-salary commitment. With the AI boom resulting in a rapid growth of the TC bonder market, which is essential for HBM production, he aims to seize opportunities in this market.
Kim, a former national representative in horseback riding, focused on the distribution and hotel sectors within Hanwha Group and is now expanding into semiconductor equipment, which is considered one of the driving forces behind the group's growth. Reports suggest that he is searching for investment targets in future technologies such as semiconductors and robotics, both domestically and internationally.
According to global investment bank JP Morgan, the global TC bonder market for HBM, which was $461 million (approximately 650 billion won) last year, is projected to grow more than threefold to $1.5 billion (approximately 2.12 trillion won) by 2027.
HANMI Semiconductor, established in 1980, is a mid-sized company manufacturing semiconductor equipment and is currently led by Chairman Kwak Dong-sin, the eldest son of the late founder Kwak No-kwon. Kwak became the CEO of HANMI Semiconductor in 2007 and assumed the role of chairman at the end of last year. While not much is known about Chairman Kwak, it is reported that he is overseeing semiconductor equipment manufacturing passed down from his father.
In the current situation where competition between Hanwha Semiconductor and HANMI Semiconductor is intensifying, industry insiders believe that the corporation securing new orders from SK hynix, the global leader in the HBM market, will have a significantly favorable partnership going forward.
Since starting joint development of TC bonders with SK hynix in 2017, HANMI Semiconductor has virtually monopolized the TC bonders supplied to SK hynix's production sites. Based on this, HANMI Semiconductor recorded a 70% share in the global TC bonder market, allowing it to maintain the top position.
However, as Hanwha Semiconductor passed SK hynix's TC bonder quality verification in March, a new supply contract for TC bonders worth approximately 42 billion won was signed, signaling a change in the situation. Hanwha Semiconductor plans to ramp up its supply volume to SK hynix.
◇ Hanwha R&D, 2.6 times that of HANMI... Legal battles as well
The industry analyzes that the powerful financial capability of Hanwha Semiconductor, a subsidiary of the 7th largest Hanwha Group, is its strength. Moreover, this is a business strongly pushed by the third generation of the group owner. Vice President Kim Dong-sun constantly emphasizes that "the key to market competitiveness is R&D."
Although Hanwha Semiconductor lagged in TC bonder technology development, it launched an offensive by investing 67.7 billion won in R&D last year, an amount that accounts for 16.8% of its revenue (401.3 billion won). In contrast, the R&D expenses of HANMI Semiconductor last year were 17.8 billion won, which is 3.2% of the company's total revenue (555.5 billion won).
HANMI Semiconductor has also begun to counterattack. After SK hynix signed a supply contract for TC bonders with Hanwha Semiconductor, it was reported that HANMI Semiconductor withdrew about 50 employees who had been stationed on SK hynix's HBM production line. At the same time, they demanded a price increase of about 25% for TC bonders and switched equipment maintenance, which was previously provided for free, to a paid service.
HANMI Semiconductor is also pursuing legal action against Hanwha Semiconductor. It filed a lawsuit against a former employee who moved to Hanwha Semiconductor in 2021 for unfair competition and won in both the first and second trials. In December of last year, they sued Hanwha Semiconductor, claiming it infringed on patents related to TC bonders.
In response, Hanwha Semiconductor stated, "The patents related to TC bonders held by HANMI Semiconductor are already widely known technologies and cannot be considered patents," and filed for the invalidation of HANMI Semiconductor's TC bonder patents with the Patent Tribunal.