South Korean Semiconductor Component Maker Dongwon Parts Launches IPO Roadshow, Reporting Surge in First-Half Operating Profit

Dongwon Parts, a South Korean manufacturer of semiconductor equipment components, held an IPO press conference in Seoul on October 27. Vice President Jo Jun stated that the company's motto is "not competing with customers like TSMC," emphasizing a strategy focused on aftermarket parts for semiconductor processes to avoid direct competition and patent disputes with equipment manufacturers.

Financial data revealed that Dongwon Parts' first-half sales reached 63.3 billion KRW, up 44.9% year-over-year. Operating profit surged from 3 billion KRW in the same period last year to 14.5 billion KRW. The company attributed this improvement to a higher proportion of high-value-added products. A key driver was the "showerhead" component, which evenly distributes gas onto wafers; its average selling price (ASP) rose from $1,646 in 2022 to $2,140 in the first half of this year.

The share of aftermarket component sales has increased from 39.3% in 2023 to 45.1% in 2025. Although it temporarily dipped to 39.7% in the first half of this year due to increased demand for new equipment, management projects that the aftermarket share will exceed 60% in the long term. Current major clients include Lam Research (45.9%), SEMES (33.4%), and Exelis (12.6%). The company is expanding its customer base to include Applied Materials (AMAT) and plans to introduce metal 3D printing technology to reduce costs and develop lightweight aerospace components.

The IPO involves issuing 2.03 million new shares at a desired price range of 23,000 to 26,500 KRW, aiming to raise between 46.7 billion and 53.8 billion KRW. The expected post-listing market capitalization is approximately 213.4 billion to 245.8 billion KRW. Samsung Securities serves as the lead underwriter.