Taesung

Taesung is a KOSDAQ-listed machinery maker supplying wet-process equipment and automation lines used in printed circuit board (PCB) manufacturing, including etching, cleaning and surface treatment.

Its equipment is applied to core wet processes such as etching and cleaning in PCB production, an area where capital spending has been expanding alongside demand for high-specification substrates for AI servers, high-layer-count PCBs and FC-BGA.

Building on its PCB wet-process know-how, the company invested early in etching and cleaning equipment for through-glass via (TGV) processing, a core step in glass substrate manufacturing.

Within TGV it had focused on front-end cleaning and etching tools, and a January 2026 order from JWMT for a back-end chemical process tool marked the starting point for a portfolio covering the full glass substrate process flow.

A third pillar is composite copper foil for secondary batteries; the company is pursuing both equipment and materials in this area as growth businesses and is also cooperating on materials development with a Canadian battery firm.

Overseas business runs through its Chinese subsidiary TAESUNG(Zhuhai) Technology under a linked model in which headquarters builds the equipment and the subsidiary handles local customer service and after-sales support.

On the production side, the company recently completed its new Cheonan plant and relocated its head office.

Because customers are mainly domestic and overseas PCB and substrate makers, results swing with downstream capital expenditure cycles, and the industry views actual mass-production experience and customer qualification as the decisive factors in glass substrate equipment, given how early the market still is.

Segment revenue mix is not available in public disclosures, so no figures are given here; PCB equipment remains the main engine while glass substrate and composite copper foil are at an initial revenue stage.

Confirmed results show a business that swings widely with downstream capital spending. Revenue fell from KRW 61.2bn in 2022 to KRW 33.3bn in 2023, recovered to KRW 59.2bn in 2024, then dropped again to KRW 37.9bn in 2025.

Operating results alternated between profit and loss: KRW 2.3bn profit in 2022 (3.8% margin), a KRW 0.7bn loss in 2023, KRW 6.0bn profit in 2024 (10.2% margin) and a KRW 2.5bn loss in 2025. Notably, 2025 combined a KRW 2.5bn net loss attributable to owners with a sizeable operating cash outflow of KRW 9.7bn.

Quarterly, the second and third quarters of 2025 were weak at KRW 8.6bn revenue with a KRW 1.2bn operating loss and KRW 8.8bn revenue with a KRW 1.2bn operating loss, before the fourth quarter turned positive at KRW 12.9bn revenue and KRW 1.4bn operating profit.

First-quarter 2026 revenue jumped to KRW 19.9bn but still carried a KRW 0.9bn operating loss, and the second quarter delivered KRW 30.5bn revenue with KRW 3.1bn operating profit as scale effects kicked in.

Per the company's filing, second-quarter revenue rose about 53% quarter on quarter and the operating margin reached around 10.2%.

Management attributed this to rapid growth in orders and sales of core PCB manufacturing equipment as AI server and high-performance computing demand drove investment in high-specification substrates such as FC-BGA, with previously secured orders being recognized as revenue in sequence.

On the balance sheet, equity expanded from KRW 41.0bn at end-2024 to KRW 128.1bn at end-2025, lowering the debt-to-equity ratio from 94.3% to 34.7%, and no dividend was paid.

The demand driver is high-specification substrates for AI servers and high-performance computing. As AI semiconductor investment spread across the chip supply chain, capital spending began recovering in the PCB equipment sector, and Taesung is pairing that recovery with an early push into glass substrate equipment.

The company said domestic and overseas PCB makers' capex is gradually recovering, with capacity additions tied to AI server and high-performance chip demand bringing both follow-on orders from existing customers and new projects. Glass substrates remain a new market without settled standards.

The industry expects tools adopted in state-led demonstration programs to serve as important technical references when large corporates and global customers build pilot lines, viewing this as an early lock-in of process criteria ahead of full commercialization.

That said, the glass substrate market is expected to open up in earnest around 2027 to 2028, implying a time lag before early references translate into revenue. In composite copper foil, supply-chain diversification is the key variable.

With global battery makers moving to reduce reliance on Chinese materials, cooperation with a Japanese battery company known for demanding adoption standards is seen as evidence that Taesung's technology can be considered for a global supply-chain partnership.

Conversely, in China investment is increasingly skewed toward domestic equipment and local supply chains, which Taesung is addressing through a localization strategy centered on its Chinese subsidiary.

Order intake is the leading indicator for future revenue.

The company said cumulative orders passed KRW 70bn as of May 2026, centered on wet-process tools for etching, cleaning and surface treatment in PCB manufacturing, reflecting expanded capital spending by global customers on high-value substrates for AI servers and high-performance computing.

In late June it reported combined first-half orders of about KRW 91.3bn for headquarters and the Chinese subsidiary, noting a three-to-four-month lead time from order to revenue recognition so that first-half volumes would be reflected sequentially from the second quarter.

On individual deals, a KRW 7.1bn PCB equipment supply contract via the Chinese subsidiary was disclosed in May 2026.

On capacity, the new Cheonan plant is planned as the core production base for glass substrate equipment and composite copper foil, with the company expecting expanded capacity, better delivery responsiveness and a production footprint for a glass substrate business that had been focused on research and qualification.

Management said development of glass substrate and composite copper foil equipment is complete and mass-production adoption talks are under way with major domestic and overseas customers, and that it will pursue core PCB equipment supply while building a volume-production framework for the new tools using the expanded Cheonan capacity.

In composite copper foil materials, the company said it expects the Japanese battery contract to signal the opening of the materials market, that inquiries and cooperation requests from global battery firms in the United States, Germany and Hungary are ongoing, and that it is reviewing an expansion of materials production capacity.

Such discussions and reviews should be distinguished from confirmed contracts and volume production, and no formal full-year revenue or profit guidance from the company was identified.

The practical focus for the second half is how quickly first-half orders convert into revenue and margin, and whether pilot-stage supply in the new businesses turns into repeat orders.