Techwing to Invest 52.6 Billion Won to Expand Semiconductor Equipment Capacity

Techwing plans to expand its semiconductor equipment production capacity to meet growing demand in the memory market. Once the new facility reaches full operation, it is expected to generate additional revenue of up to twice the company's sales last year.

Techwing disclosed on November 3 that it will invest approximately 52.6 billion won, equivalent to 26.7% of its equity capital, to build a new factory in Cheonan, South Chungcheong Province. The facility will be built on an industrial site at the Cheonan BIT Industrial Complex that the company secured earlier this year. The cost of the land is excluded from the investment figure.

Techwing's board of directors approved the purchase of the industrial site at the Cheonan BIT Industrial Complex in March. The site covers approximately 32,000 pyeong (about 105,800 square meters) and cost 15.6 billion won. The company has paid the full purchase price.

The investment period runs from November 3 through July 31 next year. Techwing said the investment is intended to expand production facilities to increase manufacturing capacity and support medium- to long-term business growth. It will also establish a production base capable of accommodating new businesses and rising customer demand.

A Techwing official said the company's existing Asan facility in South Chungcheong Province is already operating at full capacity, although the new investment is not simply aimed at increasing overall production capacity. The Asan site currently houses production lines for memory and non-memory test handlers, as well as development and manufacturing operations for next-generation products. The decision is therefore also intended to improve production efficiency.

The official added that the company is securing capacity in advance based on anticipated equipment demand from customers next year, as purchase orders (POs) continue to come in. The additional production capacity could translate into annual revenue of 200 billion won to 300 billion won. Techwing reported revenue of approximately 159 billion won last year.

The new facility will manufacture memory test handlers and cube probers. Memory test handlers automatically transfer devices under test to automated test equipment (ATE) and create high- and low-temperature environments to verify chip reliability. Cube probers inspect high-bandwidth memory (HBM) dies at temperatures ranging from minus 40 degrees Celsius to 150 degrees Celsius. Techwing's customers include Samsung Electronics, SK Hynix and Micron Technology.