Neosem

Founded in 2002, Neosem specializes in back-end semiconductor test equipment that verifies the performance and reliability of memory chips during the manufacturing process.

Its business is split largely between SSD (solid-state drive) testers that check performance and reliability, and MBT (monitoring burn-in tester) equipment that subjects memory chips to stress conditions. The company also runs a distribution business for overseas-made assembly machines and particle detectors.

In 2023, Neosem became the first in the world to commercialize a CXL 1.1 memory test device, and it later developed and shipped a CXL 2.0 test device to customers, again a world first.

For HBM (high-bandwidth memory), the company developed a high-temperature stress test device called the 'BX burn-in tester,' which the company has stated is at the quality-assurance (QA) stage with Samsung Electronics.

Its main contracting counterparty is US-based subsidiary NEOSEM TECHNOLOGY INC., while end customers are understood to be global memory makers such as Samsung Electronics and SK Hynix. Most of its revenue comes from exports, exposing results to currency movements.

Domestically, Unitest, TechWing, and Exicon compete in burn-in and module test equipment, with competition increasingly extending into CXL and HBM test equipment as well.

Neosem's annual results grew from KRW 74.7 billion in revenue and KRW 8.4 billion in operating profit (11.2% margin) in 2022 to KRW 105.2 billion in revenue and KRW 16.5 billion in operating profit (15.6% margin) in 2024.

In 2025, however, revenue fell roughly 39% year-over-year to KRW 63.9 billion, and operating profit dropped sharply to KRW 4.1 billion (6.3% margin), with owners' net income shrinking from KRW 19.2 billion to KRW 5.3 billion. The quarterly pattern shows a clear alternation between weakness and recovery.

In 2Q25, revenue was only KRW 16.3 billion with operating profit of KRW 0.5 billion, and the company posted a net loss of KRW 1.6 billion. In 3Q25, revenue fell further to KRW 10.2 billion with an operating loss of KRW 0.5 billion, though net income turned positive at KRW 0.7 billion.

In 4Q25, revenue more than doubled quarter-on-quarter to KRW 22.6 billion, with operating profit of KRW 2.5 billion and net income of KRW 4.4 billion, marking a significant improvement.

Revenue eased again to KRW 14.5 billion in 1Q26 with operating profit of KRW 0.6 billion and net income of KRW 2.3 billion, but 2Q26 delivered the strongest quarter in the recent five-quarter window, with revenue of KRW 36.0 billion, operating profit of KRW 11.4 billion (roughly 31.7% margin), and net income of KRW 8.8 billion.

This large quarter-to-quarter swing in revenue and profit reflects the order-driven nature of the equipment business, where results cluster around the delivery and revenue-recognition timing of large supply contracts.

The back-end semiconductor test equipment industry in which Neosem operates is heavily influenced by shifting memory demand driven by expanding AI server and data center investment.

Demand for high-bandwidth memory and server DRAM has surged due to rising AI demand, and demand for mobile and general-purpose memory is also reported to have picked up quickly from the second half.

Industry participants view CXL, which can substantially expand memory capacity per server, as having become a necessity rather than an option for cloud companies, with test equipment makers expected to capture more value as specifications advance.

Because each AI server built creates an opportunity to sell HBM, CXL, and SSD test equipment, Neosem is positioned across the final test stage of all three categories.

That said, the industry's order flow is dictated by the capital-expenditure decisions and procurement timing of a small number of memory makers, meaning there is typically a lag between a cyclical upturn and its translation into equipment-maker results.

Domestically, competitors such as Unitest, TechWing, and Exicon compete in burn-in and module test equipment, with competition increasingly spreading into CXL and HBM test equipment as well.

On March 27, 2026, Neosem disclosed a corporate value-up plan centered on SSD and CXL test equipment, committing to continuously enhance performance across next-generation product lines including Gen5/Gen6 SSD, CXL 3.1, CLT, and test automation.

A company representative stated in early October 2025 that development of the CXL 3.1 memory test device had passed 90% completion and was nearly finished, with discussions with customers ongoing.

Indeed, through 2026 a series of overseas supply contracts via US subsidiary NEOSEM TECHNOLOGY INC. were disclosed: a GEN5 SSD tester contract worth KRW 6.21 billion (April 14 to August 31, 2026) on April 14; a GEN6 SSD tester contract worth KRW 4.70 billion (April 3 to November 30, 2026) on April 3; and a GEN6 SSD tester and module contract worth KRW 8.53 billion (May 6 to August 31, 2026) on May 6.

Prior to these, a KRW 14.1 billion test equipment supply contract (November 14, 2025 to June 30, 2026) was also disclosed in November 2025.

On the HBM side, given the company's statement that its BX burn-in tester is at the QA stage with Samsung Electronics, whether this device transitions to mass production is an important point to watch.

On the CXL market, Yole Intelligence has forecast the market to reach $2.1 billion in 2026 and $15 billion by 2028, making it worth monitoring whether test equipment demand expands in line with this.