Union Semiconductor Equipment Co.,ltd;

Founded in 1988 and listed on KOSDAQ in 1999, Unisem is a semiconductor and display equipment specialist built around two core product lines: scrubbers that treat hazardous gases generated in chip manufacturing, and chillers that precisely control process temperatures.

As of Q3 2025, chillers were the largest revenue contributor at 43.9%, followed by scrubbers at 22.4% and maintenance and other services at 31.7%. The scrubber lineup spans burn, plasma, heater, and catalyst types, and the company is known as the only domestic player with both burn-type and plasma-type references.

Its main customers are Samsung Electronics and SK Hynix, and historical data show a customer base that has diversified over time to include a Chinese display maker, Kioxia, and Micron.

In scrubbers, competitors include GST and CSK within Samsung's supply chain and Youngjin and GNBS Eco within SK Hynix's, while chiller competitors include FST, GST, and the unlisted Techeast.

Hana Securities estimated Unisem's domestic market share at roughly 50% in gas scrubbers and 40% in chillers, attributing the expansion from sub-10% shares before 2019 to localization momentum following Japan's export restrictions.

Beyond equipment sales, the company generates recurring revenue through maintenance services such as removing sediment that accumulates inside scrubbers.

More recently, the company has also secured new overseas customer wins, including progress tied to Samsung's Taylor, Texas fab, extending beyond its traditional domestic revenue base.

Annual revenue fell from KRW 253.2 billion in 2022 to KRW 232.1 billion in 2023 and KRW 218.2 billion in 2024 before rebounding sharply to KRW 273.3 billion in 2025.

Operating profit, however, dropped from KRW 29.0 billion in 2022 to KRW 17.4 billion in 2023 and KRW 10.0 billion in 2024, and recovered only modestly to KRW 10.9 billion in 2025, lagging the revenue rebound.

As a result, operating margin declined for four straight years, from 11.5% in 2022 to 7.5% in 2023, 4.6% in 2024, and 4.0% in 2025, reflecting a sustained profitability burden compared with prior years.

Net income attributable to controlling shareholders also fell from KRW 19.6 billion in 2022 to KRW 9.0 billion in 2025.

On a quarterly basis, Q2 2025 revenue of KRW 80.0 billion produced only KRW 2.1 billion in operating profit, and net income swung to a loss of KRW 0.7 billion due to an inventory valuation reserve tied to new equipment then under demo evaluation.

Results improved gradually thereafter, with Q3 2025 posting revenue of KRW 56.8 billion, operating profit of KRW 1.7 billion, and net income of KRW 3.3 billion, and Q4 2025 revenue of KRW 76.0 billion, operating profit of KRW 2.3 billion, and net income of KRW 2.3 billion.

The recovery became more pronounced in 2026, with Q1 revenue of KRW 74.8 billion, operating profit of KRW 5.1 billion, and net income of KRW 5.5 billion, followed by Q2 revenue of KRW 80.1 billion, operating profit of KRW 5.3 billion, and net income of KRW 5.2 billion.

Notably, Q2 2026 revenue was nearly flat year over year, yet operating profit more than doubled, a pattern that likely reflects a shift in product mix and a base effect from the prior year's one-time reserve rather than a surge in shipment volume alone.

Summed across the trailing four quarters (Q3 2025 through Q2 2026), net income attributable to controlling shareholders reached roughly KRW 16.4 billion, exceeding full-year 2024 net income of KRW 15.5 billion.

The semiconductor scrubber and chiller market is entering a phase where customer capital spending is resuming, driven by growing HBM and high-performance memory demand tied to AI server expansion.

Samsung Electronics is pursuing new phase investments at its Pyeongtaek P4 campus alongside ramp-up of its Taylor, Texas fab, while SK Hynix is accelerating completion of its M15X fab, both of which the industry expects to lift demand for utility equipment such as scrubbers and chillers.

As NAND layer counts rise and DRAM geometries shrink, cryogenic etch processes operating at roughly -60°C to -80°C are emerging as a new trend, a structural shift favoring higher-spec, higher-priced cryogenic chillers over conventional refrigerant-based units.

At the same time, global carbon-neutrality and RE100 policies are gradually increasing demand to replace conventional burn-type scrubbers with non-combustion alternatives such as plasma systems.

Competitively, Unisem is regarded as effectively the only domestic supplier shipping scrubbers to both Samsung Electronics and SK Hynix, though rivals such as GST, CSK, Youngjin, and GNBS Engineering continue to compete for share within each customer.

In chillers, FST and GST form the other competitive axis, meaning the pace at which new products such as CO2 chillers and cryogenic chillers reach commercialization is likely to be a key variable in defending market share going forward.

In an April 2026 report, SK Securities projected that equipment setup for Samsung Electronics' P4 phase 4 (ph4), originally expected across the second half of 2026 through the first half of 2027, would be pulled forward entirely into the second half of 2026, with phase 2 (ph2) equipment loading starting by year-end and the P5 cleanroom opening expected around May-June 2027, from which point new fab equipment orders would begin.

The same report expected SK Hynix's M15X completion to also be accelerated, speeding up equipment loading.

The company unveiled CO2 chiller technology for semiconductor processes at SEMICON Korea in February 2026; a company representative stated that the equipment, whose development was completed in August of the prior year, is currently in a performance and stability evaluation stage with domestic and overseas customers, including in the United States and Europe, rather than at mass-production stage.

Separately, in August 2026 the company kicked off a government-funded project through the Korea Institute of Energy Technology Evaluation and Planning to improve efficiency and localize core components of -60°C cryogenic chillers, running from April 2026 through December 2029 with total project funding of roughly KRW 18.1 billion, including about KRW 13.0 billion in government support.

Company officials have noted that heat-exchange type equipment remains the current revenue driver, while the CO2 chiller is positioned as a next-generation product line aimed at longer-term regulatory compliance.

The timing and scale at which this development pipeline converts into actual production and revenue stand as a key variable shaping the company's future earnings trajectory.