ISC Achieves Record High Q3 Sales of 49 Billion Won

[Asia Economy Reporter Donghyun Choi] Global semiconductor test solution company ISC announced on the 15th that it achieved consolidated sales of 49.03 billion KRW and operating profit of 15.83 billion KRW in the third quarter of this year.

Despite worsening business conditions such as global inflation and a slowdown in the semiconductor market, ISC recorded its highest quarterly sales to date. It is also expected to achieve record annual sales following last year.

Sales of test sockets for memory semiconductors declined due to weakening demand in the memory semiconductor market, but demand for system semiconductor test sockets, such as server central processing unit (CPU) test sockets and mobile system-on-chip (SoC) test sockets adopted in flagship smartphones, drove sales.

Notably, sales of research and development (R&D) sockets used in new semiconductor development significantly increased from about 30% in the first quarter to around 50% in the third quarter. Considering that it takes 2 to 3 years from semiconductor chip development to mass production, ISC has secured continuous growth momentum from both current development-stage sales and mass production-stage sales 2 to 3 years later.

Despite market forecasts that the global semiconductor market is entering a recession, the industry expects ISC to maintain steady growth in the fourth quarter of this year and the first quarter of next year, periods typically considered off-season for the socket industry. The recent entry of ‘iSP-Micro’, which introduced ultra-precision automated assembly processes by ISC’s subsidiary, pogo pin specialist Prowell, into the European semiconductor test market is expected to increase pogo pin sales. Additionally, about 60% of sales come from high-end semiconductor test sockets applying advanced processes, and R&D sockets exceed 50%, securing stable growth drivers.

Furthermore, even if the semiconductor market slows down, socket demand remains steady due to the essential full inspection before semiconductor chip shipment. The increasing reliability required for chip testing due to semiconductor high integration and the introduction of advanced packaging technology, along with the growth of the semiconductor test component market, are also positive factors for ISC.

Meanwhile, recently, market research firm Yole Intelligence announced that the consumable parts market for semiconductor testing will expand steadily at an average annual growth rate of 5.9%, from $5.28 billion (approximately 7.4 trillion KRW) in 2021 to $7.46 billion (approximately 10.3 trillion KRW) in 2027. In particular, three sectors?burn-in/test sockets, test boards, and others?are expected to hold the highest market shares.

An ISC official stated, “Through continuous investment over several years, we have achieved growth rates in the 20% range from last year to this year, and we expect to achieve good results even in the off-season fourth quarter and first quarter of next year. From 2023, we will maximize cost competitiveness and technological capabilities of our core semiconductor test socket business to achieve the number one global market share in semiconductor test sockets,” emphasizing their commitment.

This content was produced with the assistance of AI translation services.