Supplier of Synthetic Quartz-based Focus Rings
The author is an analyst of NH Investment & Securities. He can be reached at
esshim@nhqv.com. -- Ed.
BCnC supplies QD9, a focus ring used during semicon etching processes. Sales of the synthetic quartz-based QD9 are expanding, as it is used to replace existing natural quartz-based focus rings. The firm’s development of QD9+ and CD9, which are composed of new materials, should further boost earnings growth in the future.
Supplier of synthetic quartz-based focus rings, core parts in etching process
Established in 2003 and listed in Mar 2022, BCnC develops and supplies quartz, silicon, and ceramic parts used in semicon etching and thin film deposition processes. In collaboration with Corning, the firm succeeded in commercializing the world's first synthetic quartz focus ring (QD9), which is being used to replace existing natural quartz focus rings. As of end 2021, sales broke down as synthetic quartz parts (QD9) 71%, natural quartz parts 12%, silicon and ceramic parts 12%, and other 5%. And, the company’s client portfolio broke down as equipment makers 31% and semicon manufacturers 65%.
Focus on expansion of downstream industry, replacement of existing market, and development of new products
As it bolsters utilization rates and production yields at semicon makers, the market share of BCnC’s flagship product QD9, which is composed of in-house developed synthetic quartz raw materials, is expanding.
The firm is also developing QD9+, which will soon start mass production, and CD9, which can replace existing CVD-SiC focus rings. Sales of QD9+ should boost BCnC’s OPM (compared to QD9) thanks to reduced production time and cost. Mass production is set to begin in 4Q22~1Q23. Meanwhile, CD9 should improve production yield at semicon makers and increase focus ring lifespan as fewer particles are generated during the etching process. Mass production is due to start in 2H23.
In the future, BCnC’s share price will likely be influenced by the performance of new materials and parts. Also, expectations are likely to grow for QD9 on client diversification and expanding sales at existing customers. Hopes towards new business development, which is currently progressing smoothly, are to be reflected gradually.