Preparing to Enter Semicon Parts Industry
The author is an analyst of NH Investment & Securities. He can be reached at midas.sohn@nhqv.com. -- Ed.
Point Engineering has freshly entered into the micro-pin and micro-socket (consumable semicon-related parts) markets using its aluminum anodization surface treatment technology. With its new products now being tested by a client, mass production represents a solid 2022 investment point.
Business sluggish in 2021 due to absence of downstream industry investment
Point Engineering produces diffusers, susceptors, and other parts used in chemical vapor deposition (CVD) equipment for display manufacturing. Based on its aluminum anodizing surface treatment technology, the firm engages in the processing and surface-treatment of parts, which it supplies to a global IT equipment market leader (Company A). Point Engineering’s sales portion to Company A comes to about 71% (accumulated, as of 3Q21).
Affected by an absence of new investment by global display panel makers, Point Engineering’s related 2021 sales are expected to decrease by 22.6% y-y.
For reference, Point Engineering is preparing to enter the semicon parts arena by applying its anodization technology to porous anodized film materials (anodic aluminum oxide, AAO).
Preparing to enter semicon parts industry
Point Engineering has developed semicon parts, including micro pins and micro sockets. During the semicon inspection process, a probe card is used to inspect the electrical characteristics of semicon ICs in the wafer. The micro pins mounted on the probe card correspond to each semicon IC. When using the firm’s micro pins, it is possible to produce more precise patterns than before, and the electrical and physical spectrum is widened to meet various consumer needs.
Micro sockets are necessary for semicon module package inspection. When using the company’s products, narrower pitch and minimization of the width/length of the pin are possible. In addition, the firm’s products are advantageous in a high-frequency environment and can lower the socket driving pressure to 35% or less compared to existing products. Thus, defects can be reduced and lifespan can be improved.
Both products are in the process of being approved by domestic semicon manufacturers, and the key to the company’s investment in 2022 is whether mass production of semicon related products is realized. In addition, as the firm has recently been registered as a vendor for a leading global foundry player, its production of related parts also deserves attention.