AT Semicon, Financial Structure Improvement Through Capital Increase... "Establishing a Performance Growth Foundation Through Order Expansion"

[Asia Economy Reporter Jang Hyowon] AT Semicon announced on the 30th that it will secure operational funds through a rights offering followed by a general public offering of forfeited shares worth approximately 30 billion KRW, establishing a foundation for financial soundness and a performance turnaround.

AT Semicon plans to use 21 billion KRW of the secured funds, excluding issuance costs, to repay debt, significantly reducing financial expenses and focusing on improving its financial structure. The remaining 5 billion KRW will be allocated for operating funds, and 3 billion KRW will be invested in facility funds.

Based on its core business of semiconductor back-end testing, AT Semicon entered the semiconductor packaging business through a merger with Semitek in 2014, establishing itself as a total solution provider for semiconductor back-end processes. Recently, with the growth of the electric vehicle market, domestic secondary battery manufacturers are expanding investments to increase production capacity (CAPA).

In particular, a major domestic IDM company is undergoing a memory generation shift by producing 10-nanometer (nm) class 4th generation (1a) DRAM and 176-layer or higher NAND flash starting in the second half of the year. The process complexity has increased sharply, and the required cleanroom scale has grown. As the number of high value-added products increases, orders from the two companies’ partners to secure back-end process lines are expanding.

Supported by this favorable market environment, AT Semicon’s orders related to semiconductor back-end processes are on the rise. It is expected that performance improvement through sales growth based on order expansion will be possible.

A company official stated, “We plan to improve the debt ratio through fundraising, establish a stable business foundation, and focus on performance growth through active order activities at this time when demand for capital investment in upstream industries is expanding. In particular, since we are concentrating on securing market competitiveness through production line remodeling and expansion compared to competitors, we expect to increase our market share.”

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