Uti

UTI Inc is a precision glass processing company that researches, develops, manufactures, and sells smartphone camera windows, sensor glass, and integrated modules.

The business runs on two main axes: an optical cover-glass segment centered on camera-lens protection covers for smartphones and tablets and transparent-electrode glass for fingerprint recognition, and a module/parts segment covering sensor-haptic modules, IoT composite sensors, and automotive touchscreen parts (G2 TSP).

Production takes place at a domestic plant and at Vietnamese subsidiaries, with the plant in Thai Nguyen industrial park producing an average of 22 million camera protection glass units and 7.8 million speaker protection films per month.

As new growth drivers, the company is developing ultra-thin tempered glass (UTG) for foldable smartphones, ultra-flexible glass (UFG) co-developed with Corning, and glass substrates for semiconductor packaging.

Corning became UTI's second-largest shareholder with a 9.28% stake through the conversion of convertible preferred stock, underpinning the stability of the technology partnership.

The customer base includes participation in the UTG supply chain for Samsung Electronics' foldable phones (Galaxy Z Flip) and UTG collaboration with a North American technology customer ('Company A'), and UTI is also cited as a potential second-source vendor in Apple's foldable iPhone supply chain.

However, China's Lens Technology is considered the likely primary vendor for Apple's foldable UTG, with UTI competing against domestic peers such as Dowoo Insys and BOE-Lens-related suppliers for second-source status.

Structurally, the revenue base is concentrated among a limited number of smartphone customers and models, which can amplify order volatility.

UTI Inc has recorded consolidated operating losses and net losses for four consecutive years from 2022 through 2025. Revenue fell sharply from about KRW 36.4 billion in 2022 to KRW 19.4 billion in 2023, then edged up modestly to KRW 18.6 billion in 2024 and KRW 20.0 billion in 2025.

Even so, the operating loss kept widening through the revenue recovery, growing from about KRW 4.6 billion in 2022 to KRW 19.7 billion in 2023, KRW 32.2 billion in 2024, and KRW 48.3 billion in 2025, while the operating margin deteriorated from -12.7% in 2022 to -241.9% in 2025.

Net loss attributable to owners fluctuated between roughly KRW 12.0 billion (2022), KRW 29.5 billion (2023), KRW 22.7 billion (2024), and KRW 37.4 billion (2025).

On a quarterly basis, operating losses exceeded KRW 10 billion in every quarter from 2025Q3 (-KRW 13.3bn) through 2025Q4 (-KRW 15.7bn), 2026Q1 (-KRW 13.2bn), and 2026Q2 (-KRW 15.9bn), keeping the loss trend intact.

However, net income attributable to owners showed much larger quarter-to-quarter swings: the net loss narrowed sharply to about KRW 1.0 billion in 2025Q4 from KRW 15.9 billion in the prior quarter, and then flipped to a net profit of roughly KRW 13.9 billion in 2026Q2 even as the operating loss widened in the same quarter.

This large gap between operating and net results points to the likely influence of non-operating items, making it difficult to conclude that core profitability has genuinely recovered.

On the cash-flow side, operating cash flow swung from about +KRW 3.2 billion in 2022 to -KRW 8.4 billion in 2023, -KRW 31.3 billion in 2024, and -KRW 35.2 billion in 2025, with the cash burn accelerating.

The balance sheet also weakened, as the debt ratio spiked to 485.7% in 2023, eased to 115.5% in 2024, and rose again to 227.4% in 2025.

The foldable smartphone market is emerging as a new premium growth axis as conventional bar-type smartphones mature, with the industry projecting global shipment growth of more than 20% annually.

Apple is building out its UTG (ultra-thin tempered glass) supply chain with a target of launching a foldable iPhone in 2026, and this material is considered a key component determining the finished quality of foldable devices.

However, China's Lens Technology is seen as the likely primary vendor for Apple's foldable UTG, and reports indicate that for Apple's first foldable product this year, Lens Technology is supplying the UTG for both the top and bottom panels as the main vendor.

Samsung Electronics' foldable phones split their supply chains by model: UTG for the clamshell-type Galaxy Z Flip runs through the Samsung Electronics/Corning supply chain, while UTG for the book-type Galaxy Z Fold runs through the Samsung Display/Schott/Dowoo Insys supply chain; UTI is included in the Z Flip supply chain but related revenue has been limited until recently.

Competitor Dowoo Insys has already broken ground on a second Vietnam plant, making preemptive investments to prepare for new customers and expanded volume, intensifying competition in the back-end processing market.

Glass substrates for semiconductor packaging are also drawing attention as a future growth area from multiple companies including Corning, aligning with UTI's diversification direction.

That said, the broader smartphone components industry remains locked into a low-margin structure amid maturing demand and intensifying competition, making the pace of transition into new foldable-glass and glass-substrate businesses the key variable for future results.

In a March 2026 interview, CEO Park Deok-young stated that new UTG products for a new customer are a high-margin business expected to deliver operating margins above 30%, and that as utilization rises after mass production begins, the Vietnam subsidiary is expected to turn profitable not only in the second half of 2026 but on a full-year basis as well.

UTI is reported to have begun mass production of UTG for a North American customer's ('Company A') foldable phone starting July 27, 2026.

However, the initially discussed order volume was cut from 3 million units to 1.2 million, which the company attributed to production capacity constraints and environmental regulatory issues at its Vietnam plant.

The company built two plants in Vietnam but only one is currently operating due to wastewater-treatment regulations, and it has stated a plan to raise daily output from about 26,000 units to 60,000 units and expand orders once the regulatory issue is resolved.

On the financing side, UTI raised roughly KRW 132.0 billion through six rounds of convertible bonds (CBs) between May 2024 and May 2026, and when investors exercised put options on a portion of the first-round CB (worth about KRW 54.2 billion) that matured in May 2026, the company responded with a sixth-round CB (KRW 10.0 billion) and retained earnings (KRW 7.0 billion).

Loans totaling about KRW 38.4 billion for Vietnam facility investment have maturities being extended in three-year increments beyond 2029, limiting near-term repayment pressure, though the burden of CB rollovers persists.

Regarding potential inclusion in Apple's foldable supply chain, industry reports in the first half of 2026 raised the possibility of UTI being a second-source vendor candidate or even a primary partner, but confirmation remains difficult due to non-disclosure agreements.