How Viatron Technologies is Enabling the Next Wave of Semiconductor Breakthroughs

Korea’s industrial success has largely been owed to the rise of conglomerates, which have dominated both consumer and industrial segments for decades. To support their expansion, Korea saw the emergence of domestic suppliers, which provided the conglomerates with equipment, materials and components, giving birth to a vibrant SME sector. As Korean conglomerates continue to expand globally, analysts believe that their domestic suppliers have a unique window of opportunity to also grow internationally. What opportunities do you believe exist for Korean suppliers today? 

As you rightly observed, belonging to the supply chains of Korea’s large conglomerates has been a key engine of growth for suppliers in the semiconductor and display equipment sectors. 

For Viatron, a defining moment came when Samsung introduced its own OLED displays in 2007. In the decade before that milestone, Samsung and LG invested heavily in building supply chains for materials and equipment, creating opportunities for emerging companies like ours. Founded in 2001, Viatron was able to join early co-development projects with Samsung and LG. This gave us a natural entry into their supply ecosystems and became the first real driver of our growth. 

As Samsung and LG grew, we grew alongside them, ultimately giving us the scale and track record to supply major international groups. On top of LG and Samsung, we now work with virtually all Chinese display makers, including BOE, Visionox and Tianma, as well as Taiwan’s AUO. This expansion allowed us to become a major player in the global display supply chain, leading us to command a 70% or above market share in the display heat treatment equipment sector.  In particular, our global market share for in-line RTA (Rapid Thermal Annealing) equipment is 100%.

While Viatron is recognized as a key supplier in the display supply chain, the situation is different in the semiconductor industry, which has become our new focus area. Today, the global semiconductor equipment market is dominated by a handful of large, historical companies, making new market entry a difficult task. Even in our home country of South Korea, domestic semiconductor equipment suppliers only command around 20% of the market share.

This reveals a difficult challenge that we must acknowledge despite efforts and investments, our technical recognition and international reputation are not yet where they need to be. In order to expand in the semiconductor sector and compete with the current market leaders, we must therefore develop products that are not only differentiated but inherently innovative.

Luckily for us, the semiconductor industry is today at a critical juncture, marked by the development and adoption of new technologies and production techniques. These shifts include the transition from planar 2D structures to advanced 3D architectures, such as Gate-All-Around (GAA) logic and emerging 3D memory concepts like stacked DRAM. Interestingly for us, these technologies are driving demand for fundamentally new equipment approaches, creating market niches for innovative entrants.

As such, rather than competing head-on across every step of the production process, our strategy is to focus on highly specialized, innovative and segmented areas where unique solutions can be developed. That is where we can create real value.

On top of this, I believe it is crucial for Viatron and other Korean suppliers to invest in global recognition and reputation. Making our name and technology known to actors from across the world is key in becoming a global semiconductor equipment maker. To do this, we are investing heavily in global collaboration, partnering with leading international universities and participating in technical consortia and seminars. Building such networks is essential if Korean equipment firms are to move beyond their domestic focus and become integral players of the global semiconductor supply chain.

Driven by governmental policies that promote the onshoring of chip production, the semiconductor industry is currently experiencing a large increase in fab capacity. This expansion is particularly significant in the USA, where has seen mega-projects from leading foundries like TSMC and SAMSUNG break ground. Given this unique global context, what markets do you believe your firm can expand into?

Some of our semiconductor equipment is subject to export restrictions and cannot be shipped to China. That reality makes clear that we must focus on regions such as the United States, where foundry investments have accelerated. Europe and Taiwan are also key targets.
Our core strategy is to concentrate on specialized technologies for next generation 3D architecture. Today for example, Epitaxial CVD (Chemical Vapor Deposition) equipment are highly valued not only by Korean makers, but also by global semiconductor companies like Micron and TSMC. We believe this technology will become one of our most important offerings.

Ultimately, success requires building cross-national networks and consortia. By working hand-in-hand with global players, Viatron can ensure that our innovations find their place in the most advanced fabs around the world.

One of the main challenges faced by new entrants in the semiconductor equipment market is that of integrating their equipment in pre-existing systems. This issue is compounded by the market dominance that historical suppliers hold over key process steps. How do you plan to address this concern?

Your observation is accurate. Silicon epitaxy has been in high-volume production for more than a decade with tools from companies such as Applied Materials and ASM International, tightly matched to mass-production flows. Replacing them is not easy. 

However, the coming generation of devices, such as 3nm GAA logic and emerging 3D memory architectures, demand performance levels that today’s tools cannot meet, especially in throughput. 3D DRAM concepts, for example, aim to stack dozens, and eventually hundreds, of epitaxy layers to meet the technology roadmap. Executing this fabrication with the currently available equipment would drastically lower productivity and raise cost. 

In my view, no commercially viable high-volume equipment exists yet for these applications. That is precisely where Viatron sees opportunity. We are developing equipment whose architecture and process concept are fundamentally different, positioning us to meet future requirements in terms of defect-free quality and high throughput. We are confident that when the market needs true high-volume 3D epitaxy, we will be ready.

Epitaxial CVD for next-generation 3D architecture

Viatron’s semiconductor equipment include hybrid bonders and laser assisted bonders. Those equipment are used for packaging, a back-end process. In contrast, your Epitaxial CVD is utilized for active device fabrication, a front-end process. Interestingly, few companies with the size of VIATRON have the capabilities to produce equipment for both front- and back-end applications. Why have you chosen this dual path?

While front-end processes remain crucial, future 3D device architectures will inevitably require complementary back-end innovations, such as hybrid bonding solutions. Viatron's goal is to build a key equipment portfolio that meets the needs of these emerging semiconductor architectures. Our hybrid and laser assisted bonders are developed in our Packaging Business Division. We maintain close cooperation with major Korean conglomerates in this field. Our plan is to first establish strong domestic results and then expand internationally. 

Korea’s SMEs are renowned for their agility in automation, AI, and digital adoption. How do you see these trends shaping the future of display and semiconductor equipment, including Viatron’s own systems?

I am convinced that AI and deep learning will become increasingly vital in display and semiconductor equipment. Take our heat-treatment tools: their key requirement is precise temperature uniformity, and tolerance levels are getting ever tighter.

Our systems employ more than 100 independent heaters, each controlled separately but interacting organically. Even minor changes in components can upset uniformity. To optimize these processes, we began integrating deep-learning technology several years ago, and some of our solutions are already operating successfully in mass production. I believe that in the near future AI-driven optimization will be standard in leading-edge equipment.

Viatron is active across two key markets: Display, which is your historical sector; and Semiconductors, which represent your expansion strategy. The expected market growth for these two sectors is quite different. While the semiconductor market is expected to record explosive growth on the backdrop of new technologies and applications, the display industry is marked by increased price competition and lower growth prospects. How do you balance these two sectors in your growth strategy?

While the display market is expected to continue growing, the era of rapid expansion has passed.  By contrast, semiconductors are seeing constant breakthroughs and a series of new applications, such as Generative AI, which is boosting market growth.

Recognizing this, we designated semiconductors as a new strategic pillar five years ago. We are fully aware that the global semiconductor equipment market is monopolized by a handful of giants, such as Applied Materials. But in selected, highly specialized and niche areas, we believe we can carve out meaningful positions. 

This strategic focus echoes our company vision, which is to be a “small” company with industry-leading technology. When we say “small,” we are not referring to size but rather to our laser-sharp focus on finding highly specialized areas in which we can be the best in the world. 
In OLED, for example, we pioneered innovative technologies such as non-laser crystallization and oxide water vapor treatment. When we developed those equipments, we didn’t just build the tools and sell them; rather we proposed entirely new processes and worked closely with panel makers to improve their production. That collaborative, innovation-driven mindset is what defines Viatron. 

If we were to interview you again in 2031, which will mark Viatron’s 30th anniversary, what would you like to tell us you have achieved?

My aspiration is that by 2031 Viatron will be firmly established as a globally recognized semiconductor equipment company. The barriers to entry are undeniably high, but we are confident of success.

If we meet again then, I hope we will be celebrating how we overcame those obstacles and secured a leading position on the global stage. And perhaps we can toast that success together with a glass of champagne, whether in Hsinchu, Singapore, or Seoul.

For more information, explore their website at http://www.viatrontech.com/