Jusung Engineering, a leading domestic equipment manufacturer, announced its plan to concurrently pursue both the spin-off and split-off of its semiconductor, solar, and display operations. The core semiconductor business will undergo a spin-off to avoid undermining shareholder value, while the solar and display operations will be split off to maintain strong control. The company cites “operational efficiency and the globalization of corporate value” as the reasons behind this strategic restructuring.
On May 2, Jusung Engineering disclosed its intention to simultaneously proceed with the spin-off and split-off. The semiconductor business will be separated into a new entity, tentatively named Jusung Engineering, focusing exclusively on semiconductor technology development and manufacturing. The display and solar operations will be split off into a wholly owned subsidiary, tentatively named Jusung SD. The existing corporation will be renamed to either Jusung or Jusung Holdings, assuming a role as a holding company responsible for investment and management of affiliates and related companies. It will continue to be listed on the KOSDAQ.
This move aims to help the semiconductor division emerge as a global leader, breaking away from its role in offsetting losses from other business units. Historically, Jusung Engineering has used profits from its semiconductor division to cover deficits and investment costs in the display and solar sectors. According to the 2023 business report, last year’s semiconductor equipment sales amounted to 214.8 billion won (US$157.1 million), accounting for 75.4% of the total revenue of 284.7 billion won. The spin-off is perceived as a response to the market’s undervaluation of the semiconductor business, which possesses cutting-edge technologies like “next-generation ALD equipment.”
Furthermore, Jusung Engineering revealed its first-quarter financial performance today. Sales have decreased by 18% to 56.6 billion won compared to the same period last year, while net profit increased by 55% to 16.1 billion won.
A company official stated, “The first-quarter performance reflects the market situation where next-generation semiconductor equipment has yet to translate into revenue.” He added, “We plan to strengthen the competitiveness of our semiconductor ALD equipment and diversify our clientele to build a foundation for sustained growth.”
Established in 1993, Jusung Engineering was the first in South Korea to develop semiconductor front-end equipment in 1995 and has since been recognized as a pioneering venture company in the semiconductor, display, and solar equipment industry. Since its KOSDAQ listing in 1999, it has consistently represented the country’s materials, parts, and equipment sector.
