Jusung Engineering, a semiconductor, display, and solar equipment company, has carved a mythical path in the barren land of domestic ventures. This year marks its 30th anniversary. Established in 1993, the company has experienced various challenges but has achieved remarkable growth through continuous innovation and taking a step ahead in technology development compared to other companies. Last year, it recorded its highest-ever sales performance, enhancing its reputation as a global company. It reported 437.9 billion won (US$336.6 million) in sales and 123.9 billion won in operating profit. Despite the overall downturn in the semiconductor industry this year, the company has been performing relatively well. Unlike other companies, it turned to profit in the third quarter, and its stock price, exceeding 30,000 won, is on a rising rally, attracting attention as a promising investment company.
Jusung Engineering is fully committed to advancing its semiconductor, display, and solar equipment businesses based on the innovative technologies it has developed over the years. In particular, the company continues to develop both memory and non-memory related semiconductor production equipment based on its differentiated ALD technology. In the display business, it is aiming for sales growth through diversification of equipment for both small and large panels and process expansion.
Jusung Engineering is also actively entering the solar business, which had been facing some difficulties in sales. As part of this effort, it is preparing for innovative technology development and vigorous sales activities. Jusung has introduced the world’s first next-generation solar cell (Tandem) equipment capable of achieving more than 35% efficiency based on the integration of ultra-fine semiconductor process technology and large area OLED display deposition technology. Additionally, the company is developing a new type of solar cell by placing the world’s highest efficiency heterojunction technology (HJT) solar cell at the bottom and a Perovskite Solar Cell, suitable for short-wavelength and light absorption, on top. This development is part of its plan to expand its customer base into the New Mobility industry, including electric vehicles and Urban Air Mobility (UAM).
Jusung Engineering is also diversifying its preparations for the next 30 years. Starting from early 2020, it has laid the groundwork for growth through infrastructure development, including research and development and manufacturing line reorganization. In early 2020, it established an R&D center in Yongin, spanning 7,900 pyeong, consolidating research and development of semiconductor, display, and solar equipment in one space, maximizing technological development synergy and efficiency. In the second half of 2022, it built a research and manufacturing facility of about 6,600 pyeong at its Gwangju headquarters, significantly enhancing research and production efficiency. In addition, by participating as an entering company in the Yongin semiconductor cluster construction led by SK hynix in June, it has laid the foundation for expanding semiconductor equipment production.
Business Korea met with Chairman Hwang Chul-joo of Jusung Engineering, who dreams of becoming a top global company in the field of semiconductor, display, and solar equipment, to hear about his success story and future outlook.
Q: This year marks the 30th anniversary of your company’s establishment. Could you share your thoughts on this significant milestone?
A: It has been 30 years since the establishment of the company, but it feels like just three months to me. I believe that the achievements we have made today were possible because our customers have recognized and trusted Jusung Engineering’s innovations over these 30 years. We have firmly set the goal of “technological independence” by maintaining a lead in self-reliant, cutting-edge technology and have poured all our efforts into research and development for innovation.
Currently, about 65% of our total employees are engaged in research and development, and we have registered over 3,000 patents. Regardless of the circumstances, we invest 15-20% of our sales in “technology development for innovation.” Without this, we would inevitably face difficulties in securing unique technological competitiveness and pioneering future markets. While “imitation” can be done through experience, “innovation” requires a fiery passion, determination, and patience to do something better and sooner than others think possible.
What we desperately needed and lacked was innovation. Jusung has grown solely through “innovation” over these 30 years. Throughout this long journey, all employees of Jusung have walked paths untraveled by others, and as a result, have forged new ones. The difficulty of this journey was unimaginably tough, making the 30th anniversary all the more significant and valuable.
Q: You mentioned facing many challenges. What would you consider the most rewarding achievement in these 30 years?
A: Above all, I think it was when we developed our first product. At that time, the prevailing belief was that “developing and producing semiconductor equipment is impossible,” and it’s true that knowledge and technology in this field were very limited. However, we wanted to overcome this challenging environment and demonstrate our technical superiority. The moment Jusung broke everyone’s expectations and introduced semiconductor equipment that was on par with the world’s leading companies, the joy was unforgettable.
Later, in the fierce competition between nations and companies in semiconductor materials, components, and equipment, the moment Jusung, leading with innovation, secured competitiveness and gained recognition was indescribably fulfilling. Particularly encouraging was the atmosphere in which world-leading semiconductor companies wanted to collaborate with Jusung.
I believed that innovation alone could lead to business success. However, I realized that without the “trust” and recognition from related global companies, innovation is not enough. It was then that I learned the importance of coexistence between innovation and trust.
Q: Can you discuss Jusung’s strengths compared to its competitors?
A: Jusung is currently engaged in fierce competition with leading semiconductor equipment companies in the United States and Japan to secure a position in the global market. The difference in company size is enormous. Based on sales performance, we are much smaller, with ratios as stark as 50 to 1 or even 100 to 1. Even in terms of company history, we are no match; while U.S. and Japanese companies have been around for 60 to 70 years, Jusung has only made it to 30 years so far.
But that’s not all. Economically, we are about 1/100th the size, and our workforce is only about 1/50th. In such conditions, the only way for Jusung to win is to introduce advanced technology faster than other companies and to continuously achieve innovation. I believe this is where Jusung’s competitiveness lies.
Q: In the semiconductor equipment sector, Jusung’s competitiveness is well recognized. What would you consider your most successful technology or equipment?
A: It’s Atomic Layer Deposition (ALD). Our company is currently focusing on developing and producing equipment adopting differentiated ALD technology in the semiconductor industry, where tech migration is accelerating. I believe that Jusung has set global standards with ALD. Of course, we didn’t develop ALD technology independently; it was theorized by scientists in the field 40 years ago but not applied in products. Jusung was the first in the world to successfully apply it in equipment manufacturing.
As a result, ALD technology is now recognized as a standard in not only semiconductor equipment but also in display and solar equipment. In this regard, Jusung’s equipment development using ALD technology has significantly contributed to the advancement of global semiconductor and display technologies. Moving forward, our company plans to integrate cutting-edge innovative technology with ALD to innovate in the development of semiconductor, display, and solar equipment.
Q: There’s a prevailing view that the semiconductor market is facing difficulties this year. The outlook for the equipment industry is also quite negative. What are Jusung’s strategies to overcome this?
A: It’s true that the forecast for the semiconductor market this year is not favorable. I understand that South Korean semiconductor, display, and solar companies are facing many difficulties in competing with global corporations. Of course, there has never been a time without challenges. In such situations, creating a market by making products that are better and cheaper with existing technology is easy.
However, what’s more important is creating new products with new technology and thereby establishing a completely new market. If you create a new market, new customers will always exist, enabling a company to achieve remarkable growth. Jusung is focusing on creating new products using world-leading technology, considering these aspects. We are emphasizing the development of global leading technology and creating a corporate environment that is one step ahead and better than other companies, regardless of the challenges. New customers always exist, so we are concentrating our managerial efforts on developing innovative technologies.
Q: At the 30th anniversary celebration, you mentioned a focus on innovative technology development to become the number one company in semiconductor, display, and solar manufacturing equipment. Could you elaborate on this?
A: The innovative technologies we are currently focusing on at Jusung are trade secrets, so it’s difficult to disclose them in detail. As you know, semiconductors can be considered the foundation of all industrial technologies. Display technology converts electricity into light using semiconductor technology, while solar technology converts light into electricity. The technology we are currently commercializing can be considered the core technology for equipment in all three areas – semiconductors, displays, and solar.
Jusung has reached this understanding by not imitating other companies or technologies. It would be more costly to develop technology and apply it only to semiconductors and not to displays. Our company is increasing its competitiveness by developing core technologies that can be applied to all three types of equipment. Hence, we have adopted the slogan, “Jusung is developing future semiconductor, display, and solar technologies,” to enhance our image as a global future innovation technology company.
If the source technology developed by Jusung’s innovation is properly applied in equipment development, its efficiency is tremendous. Although our current staff is about 600, I believe we will not fall behind in efficiency competition even against companies with 6,000 or 60,000 employees.
Q: Considering the intense competition for future technology in the semiconductor, display, and solar manufacturing equipment sectors in recent years, what is Jusung’s technology development strategy for the next 30 years? What areas will you focus on for competitive advantage?
A: I believe semiconductor, display, and solar technologies will always be needed as long as the universe exists. This is based on a combination of transistors and capacitors, and such technology will always be necessary.
Therefore, Jusung is concentrating on researching and developing materials, processes, and equipment that can create significantly improved future transistors and capacitor technologies, pioneering these developments globally. This is our strategy for preparing for the next 30 years. If this progresses well, in the future we expect to achieve more than a hundred times the synergy of the past 30 years. This is also a task that Jusung must undertake and realize for the development of related industries.
Q: I understand there is a lot of interest in expanding into foreign markets. Could you elaborate on that?
A: Currently, South Korea has the world’s top competitiveness in the semiconductor memory sector. However, the country does not have the same level of foundational technology in related fields. Despite this, Korean companies are more interested in technologies needed immediately rather than those required for the future.
Jusung is very interested in developing future technologies that are ten years ahead of what our customers envision in order to be competitive in overseas markets. While it’s not easy, we are making every effort to support our customers in adopting future technologies.
As part of this, we are continuously engaging in technology sharing and development cooperation with many overseas customers for core technology development. This cooperation with overseas clients is expected to yield synergy beyond expectations soon.
Q: What are your performance targets for this year?
A: In the third quarter of this year, we recorded consolidated sales of 86.1 billion won and an operating profit of 6.2 billion won, which is somewhat lower than last year. While we cannot expect the record-breaking results of last year, the shift to profitability in the third quarter, contrasting the 8.7 billion won operating loss of the second quarter, is a positive sign.
Therefore, there is great anticipation for next year’s performance. While poor performance due to technological or sales competition can be seen as a “crisis,” I don’t consider a downturn in overall economic performance due to a general recession as a significant threat. Jusung is not losing in competition but is rather not achieving expected results due to market recession. We are making various efforts to overcome this. Jusung also has the catchphrase, “Lose a war and become a slave; lose in competition and become destitute,” and is searching for ways to win in competition.
Q: I would like to hear about your management philosophy.
A: It’s about “living well and being happy.” The well-being and happiness of everyone at our company are my concerns. We have adopted the management motto, “Jusung creates happiness, and homes are where happiness is enjoyed.” How to realize this is my important management task and goal.
There are three ways to create happiness: economic comfort, time freedom, and environmental liberty. I believe that only when these three are properly implemented can we truly live better and be happier.
Especially in the era of the Fourth Industrial Revolution, the only way to achieve economic comfort is through innovation. Winning in competition and creating added value through innovation leads to economic comfort, which in turn allows for time freedom to make homes happier and naturally enjoy environmental liberty. I think it’s difficult to live better and be happier without innovation.
Q: You established the Korea Entrepreneurship Foundation in 2011 and have been actively giving back to society. Do you have any other plans for social contribution?
A: I believe I was the first to use the terms “entrepreneurial spirit” and “co-growth” around 2010. At that time, the term entrepreneurial spirit was unfamiliar, and instead of co-growth, the term “mutual prosperity” was more commonly used. I have consistently spoken about co-growth, meaning growing together based on sharing, as I believe that mutual prosperity without sharing is meaningless.
At that time, there was a lot of interest in young entrepreneurs dreaming of ventures. As you know, innovation can disappear like a bubble due to further innovations, but trust is built over time and effort. Seeing the start-up ecosystem of young entrepreneurs emphasizing innovation over building trust, I established the Korea Entrepreneurship Foundation. I believe many young entrepreneurs are learning the entrepreneurial spirit of building innovation and trust through the foundation. The Ilun Scholarship Foundation, established in 2003, was started in the same context. Going forward, if there are opportunities to share innovation, I plan to continue supporting it through many different types of activities.