How Japan’s Export Curbs Helped Korea’s Materials, Parts, and Equipment Makers Profit First from the HBM Boom

When people talk about the semiconductor industry, Samsung Electronics and SK hynix are always the first names that come to mind. That’s true enough. But the real force that keeps fabs running, lifts yields, and ensures delivery schedules are met comes from the materials, parts, and equipment suppliers behind the scenes. If materials falter even once, the line stops. If a single piece of equipment fails to arrive on time, expansion schedules slip. And if inspection and metrology can’t keep up, advanced process technology becomes an industry running on little more than instinct. Semiconductors are not an industry defined only by chipmakers; they are an industry where the strength of the materials, parts, and equipment ecosystem is competitiveness itself.

Japan’s export controls in 2019 forced an uncomfortable truth onto Korea’s semiconductor industry. When key items such as hydrogen fluoride, photoresist, and fluorinated polyimide were suddenly constrained, everyone called it a crisis. But paradoxically, that shock accelerated localization. Soulbrain became a leading example of domestic production of high-purity hydrogen fluoride, Dongjin Semichem emerged more clearly as Korea’s flagship photoresist company, and Korea’s supply chain grew far thicker across materials, components, and equipment. And where does market money flow first now? In the HBM and advanced packaging cycle, bonding, testing, and consumable parts can pull earnings forward even ahead of the memory makers themselves. That is how the game has changed.

Materials — Localization Accelerated by Japan’s Export Curbs (9 companies)

Materials may not be visible on the surface, but they are the foundation of semiconductor yields and supply-chain stability. This is also where the most dramatic changes have taken place since 2019. Soulbrain has established itself as a flagship localization player, supplying Samsung and SK with high-purity hydrogen fluoride, etchants, precursors, and CMP slurry. Dongjin Semichem, meanwhile, has cemented its position as Korea’s leading photoresist company, spanning KrF and ArF photoresists, CMP slurry, and even development for EUV. Without Japan’s export restrictions, would things really have moved this fast? Probably not.

The same goes for specialty gases, wafers, and precursors. SK Specialty is the global No. 1 in NF3 and also has WF6, making it a heavyweight in specialty gases. Foosung has specialty gases such as WF6 and C4F6, along with high-purity hydrogen fluoride. Wonik Materials supplies semiconductor specialty gases and precursors to Samsung and SK. DNF supplies High-k and hardmask (DPT) precursors to Samsung, while Hansol Chemical is the domestic leader in semiconductor-grade hydrogen peroxide and precursors. SK Siltron is Korea’s only wafer maker, producing 300mm silicon wafers and SiC. S&S Tech is the country’s only blank mask company and is also in the early stages of developing and mass-producing EUV pellicles. The essence of materials localization is not simple substitution, but having built the capability to connect each step of the process chain within Korea.

Company	Core business
Dongjin Semichem	Photoresists (KrF/ArF, EUV under development) · CMP slurry — Korea’s leading photoresist player, supplier to Samsung
Soulbrain	High-purity hydrogen fluoride · etchants · precursors · CMP slurry — flagship of 2019 HF localization, supplier to Samsung and SK
SK Specialty	Specialty gases including NF3 (global No. 1) and WF6 — SK affiliate (unlisted, formerly SK Materials specialty gas business)
Foosung	Semiconductor specialty gases (WF6 · C4F6) · high-purity hydrogen fluoride (also LiPF6 for secondary batteries)
Wonik Materials	Semiconductor specialty gases · precursors — supplier to Samsung and SK
DNF	High-k · hardmask (DPT) precursors — supplier to Samsung
Hansol Chemical	Semiconductor-grade hydrogen peroxide · precursors — domestic leader
SK Siltron	Silicon wafers (300mm) · SiC — Korea’s only wafer maker (unlisted)
S&S Tech	Korea’s only blank mask company + early-stage EUV pellicle development and mass production

Front-end Process Equipment — Deposition, Etch, Cleaning, Heat Treatment (9 companies)

Front-end process equipment is still an area where Korea needs to get much bigger, but there are already players here that are hard to ignore. SEMES is the country’s largest equipment maker, covering integrated tools such as cleaning, etch, and bonding, and it is part of Samsung. Wonik IPS is one of Korea’s flagship names in CVD/ALD deposition and RTP thermal processing equipment, while Jusung Engineering is a major force in ALD. Eugene Technology also has a clear presence as a specialist in ALD and LPCVD deposition equipment, and TES makes PECVD deposition, dry etch, and cleaning equipment. APTC is widely regarded as a key supplier to SK hynix in plasma dry etch equipment. KC Tech is unusual in that it combines cleaning and CMP equipment with CMP slurry as well.

The name that stands out most here is HPSP. It has effectively held a global monopoly in high-pressure hydrogen annealing equipment, though YEST began entering the market in 2024. You can’t say a monopoly lasts forever, but looked at another way, that also tells you just how high the technical barriers in this market have been. It is also hard to leave out scrubber and chiller companies like Unisem and GST. They are not flashy, but without equipment that handles process gases and stabilizes temperature, the line simply does not run. In front-end equipment, the real money is not in generic tools, but in equipment that combines process-critical importance with high technical barriers.

Company	Core focus
SEMES	Integrated equipment including cleaning, etch, and bonding — Korea’s largest equipment maker (Samsung affiliate, unlisted)
Wonik IPS	Deposition (CVD/ALD) and thermal processing (RTP) equipment — a leading domestic front-end equipment player
Jusung Engineering	ALD deposition equipment and solar — a major ALD player
TES	PECVD deposition, dry etch, and cleaning equipment
Eugene Technology	Specialist in ALD and LPCVD deposition equipment
APTC	Plasma dry etch (etcher) equipment — a key SK hynix supplier
KC Tech	Cleaning and CMP equipment + CMP slurry (also active in materials)
HPSP (HPSP)	High-pressure hydrogen annealing equipment — global monopoly (YEST began entering from 2024~)
Unisem · GST	Semiconductor process gas scrubbers and chillers

Inspection & Metrology — Catching Defects the Eye Can’t See (5 companies)

Inspection and metrology matter far more than the numbers on the income statement suggest. As processes continue to miniaturize, the ability to see becomes just as important as the ability to make. Nextin is often cited as a localization success story in patterned wafer dark-field defect inspection equipment, replacing KLA. One of the Korean semiconductor industry’s weakest links for years was precisely this “eyes” segment, so the fact that domestic equipment is gaining a foothold here means far more than symbolism.

Park Systems is even clearer-cut. It ranks No. 1 globally in industrial atomic force microscope (AFM) metrology and holds roughly 80% of the industrial market. AUROS Technology supplies overlay metrology equipment to Samsung and SK hynix, while Intekplus focuses on visual inspection equipment for semiconductor packages and substrates. Pemtron handles inspection and metrology equipment such as 3D SPI and AOI. In an industry where a single invisible defect can wreck yield, these companies’ roles tend to be recognized only belatedly. In the era of ultra-fine processes, companies that can see well before others do are rarer than companies that can simply manufacture well.

Company	Core focus
Nextin	Patterned wafer dark-field defect inspection equipment — domestic replacement for KLA
Park Systems	Industrial atomic force microscope (AFM) metrology — global No. 1 (industrial market ~80%)
AUROS Technology	Overlay metrology equipment — supplied to Samsung and SK hynix
Intekplus	Visual inspection equipment for semiconductor packages and substrates
Pemtron	Inspection and metrology equipment including 3D SPI/AOI

Back-End Processing & Components — the Real Winners of the HBM Era (10 companies)

The earliest gains the market is feeling right now are flowing to back-end processing and components. HBM is the clearest example. Hanmi Semiconductor is the global No. 1 in TC bonders for HBM, with roughly 71% market share. It supplies SK hynix and Micron. That means this is not just a good equipment company—it is a company standing at the gate of HBM capacity expansion. Techwing is the global No. 1 in memory test handlers with about 70% share, and it also has the new HBM cube prober business attached. These companies do not simply ride along when memory makers do well. If memory companies want to expand HBM, they have to buy this equipment first. Isn’t it obvious now who gets paid first?

TCK is the global No. 1 in SiC focus rings for etching, with around 80% market share. Hana Micron and SFA Semiconductor are Korea’s leading names in the OSAT space, while DI, Unitest, and Exicon handle back-end testing in memory and SSD burn-in and testers. Wonik QnC supplies consumable parts such as quartzware and ceramics, while Hana Materials makes silicon and SiC rings and electrode consumables for etching and supplies TEL. MiCo, through MiCo Ceramics, has ridden the localization trend replacing Japanese dependence in ceramic heaters and electrostatic chucks (ESC), while Worldex covers silicon electrodes and quartz parts for etching. In the HBM era, the real economics build up faster not at the center of the memory chip itself, but in the back-end materials, parts, and equipment that stack it, bond it, inspect it, and keep it running.

Company	Core business
Hanmi Semiconductor	Global No. 1 in TC bonders for HBM (thermo-compression bonding) (~71% share) — supplies SK hynix and Micron
Techwing	Global No. 1 in memory test handlers (~70%) · new HBM cube prober business
TCK	Global No. 1 in SiC focus rings for etching (~80%) — supplies global equipment makers
Hana Micron	Leading domestic OSAT (semiconductor packaging and testing) — affiliate of Hana Materials
SFA Semiconductor	OSAT (packaging and testing)
DI · Unitest · Exicon	Memory and SSD burn-in/testers — back-end testing
Wonik QnC	Consumable parts such as quartzware and ceramics
Hana Materials	Silicon and SiC rings/electrode consumables for etching — supplies TEL
MiCo	Ceramic heaters and electrostatic chucks (ESC) — MiCo Ceramics (localization replacing Japanese dependence)
Worldex	Silicon electrodes and quartz parts for etching

What to Watch Going Forward

Materials, parts, and equipment self-reliance is no longer just an industrial policy slogan. It is now a matter of supply chain security. We have already lived through an era when a single regulatory move by a specific country could shake the entire system. That is why what matters now is not treating localization like a form of patriotic consumption, but looking at how many items can actually be substituted and in which process steps Korean companies have gained real bargaining power. Names like Dongjin Semichem, Soulbrain, SK Specialty, SEMES, Wonik IPS, Nextin, Park Systems, Hanmi Semiconductor, Techwing, and TCK are the markers of that shift. In the end, supply chain security is not about the localization ratio. It is about how many irreplaceable materials, parts, and equipment companies you have.

The picture is likely to become even clearer from here. As HBM and advanced packaging continue to grow, the importance of bonding, testing, metrology, and consumable components will only rise further. If front-end processing was the heart of the memory industry, then in the next cycle back-end processing and components could move to the front line of cash flow. When looking at the semiconductor industry, it is time to abandon the habit of focusing only on finished-product companies. You need to watch the companies that actually keep fabs running, the companies that can serve as substitutes when a crisis hits, and the companies that receive orders first when capacity expansion begins. That is the real plot twist in Korea’s materials, parts, and equipment sector today.

※ This article is based on publicly available materials cross-checked on the web to organize company names, core businesses, and market positions, and some assessments reflect the author’s own views. It should not be used as a direct basis for investment decisions.

Written: July 2026. Ealexandro