CMP Ventus System and Ceria Slurry for Advanced Chips

Over the decades, close collaboration between major chipmakers and local suppliers has fueled Korea’s rise in semiconductor equipment and materials. In your view, how have these partnerships shaped the growth of domestic players, and what key trends have emerged as a result?

Working with Samsung and SK Hynix has been critical to our development. These companies are global leaders in memory chips, and they impose extremely high technological standards. In order to meet these stringent requirements, we had to invest considerable effort in innovation and precision. Our close cooperation—particularly through joint development programs (JDPs)—not only pushed us to enhance our technological capabilities but also built strong trust in our products. This trust, combined with our accumulated experience, gave us a significant competitive edge in the global market.

Amid a resilient domestic supply chain and growing global demand, Korean suppliers face both competition and opportunity. With recent shifts like the CHIPS Act, Europe's semiconductor push, and Malaysia's backend regulations, what global opportunities and challenges do you see ahead for your company?

That is indeed a multifaceted and complex question. I believe the opportunities available depend largely on the specific situation and positioning of each company—what kinds of products they offer, what client relationships they’ve built, and how prepared they are to scale globally.

In the case of KC Group, which comprises seven affiliated companies, each unit faces different dynamics. For instance, KC Part Tech—our affiliate specializing in parts—still relies heavily on business in China. However, for KC Tech, the ongoing trade tensions between the U.S. and China pose serious challenges in expanding our semiconductor business in China. Export controls imposed by the U.S. have made it increasingly difficult for equipment manufacturers like us to access the Chinese market. In response, China has accelerated efforts to localize its supply chain, and we are now competing directly with Chinese companies that offer similar products at a comparable scale.

While we were able to enter the Chinese display market quickly, the semiconductor sector has proven much more difficult. As a result, we are now shifting our focus away from China and toward alternative regions. The U.S.–China tensions have, in a way, forced us to become more strategic in narrowing our focus and concentrating on product categories where we can maintain technological leadership.

Could you elaborate on the product categories and regions where you see the most promising synergies going forward?

In the slurry business, we see strong potential in partnering with global semiconductor manufacturers such as GlobalFoundries, Intel, and CXMT. We are actively working to expand and reinforce our slurry operations, and we plan to open a local office in the United States to better support this initiative.

As for our CMP equipment business, we are still in the early stages of global expansion. To grow this segment, we are targeting collaborations with major players in both the U.S. and Japan. Our strategy is to build partnerships that allow us to jointly develop technologies tailored to the unique needs of each region, and thereby establish a stronger global presence.

The semiconductor industry faced a major downturn in 2022 and 2023, largely due to elevated inventory levels and weakened demand amid global monetary tightening. However in February, the Semiconductor Industry Association reported global semiconductor sales reaching USD 627.6 billion, a 19.1% year-over-year increase. From this year onward, over the next two to three years, where do you anticipate the fastest areas of growth within the industry?

While I wouldn’t call myself an expert forecaster, many in the industry agree. I share the view, that despite periodic fluctuations, the long-term growth trajectory of the semiconductor sector remains strong. There are two primary pillars driving this growth: data centers and the mobile industry. In addition, we expect to see the emergence of new leaders who will play a pivotal role in shaping the future of semiconductors. One area experiencing exponential growth is the HBM sector, which we are closely watching due to the transformative changes it’s bringing.

At KC Tech, we view our role as developing advanced technologies that meet evolving client needs. Continued innovation is essential for us to remain competitive in this fast-moving landscape.

One fascinating trend in AI is the positive feedback loop between technology and application. How is KC Tech approaching the integration of advanced computing, machine learning, or language models within your equipment and operations?

At this point, we have not yet integrated AI directly into our equipment, but we are actively working toward that goal. Traditionally, AI and automated control systems were used to identify optimal parameters within defined specifications. Looking ahead, we plan to implement AI in areas such as real-time equipment monitoring and diagnostics. A critical question we are now exploring is not just whether to use AI, but how to apply it most effectively.

It is essential that we continue upgrading the performance and functionality of our equipment. For example, in high-performance memory applications such as HBM, both CMP and slurries play vital roles, especially in chip planarization. As AI-driven applications impose increasingly strict quality requirements, we must not only refine our existing technologies but also adopt entirely new approaches.

One of our biggest challenges is evolving our current equipment to keep pace with the rapid technological advancements driven by AI. The goal is to ensure that our systems are not just compatible with, but actually optimized for, this new wave of advanced computing.

Would it be practical, or beneficial, to apply AI specifically for monitoring slurry flow rates or CMP process speeds, or is that not something you are currently pursuing?

AI certainly has the potential to be applied in slurry flow monitoring and CMP process speed control. However, these are just one part of a much broader picture. Monitoring slurry characteristics is important, but more critical is the ability to oversee the entire performance of the equipment system.

AI can play a central role in analyzing system stability and overall product quality. By collecting and interpreting data trends, AI can help us maintain consistent performance and detect anomalies before they become problems. While meeting strict specifications is important, it’s equally vital to understand the variations that occur within those parameters.

Using AI to analyze such deviations allows us to build statistical models that help manage a range of scenarios and ultimately ensure a stable and high-quality final product.

Established in 1987, KC Tech has grown into a leading Korean company specializing in cleaning equipment and materials for the semiconductor and display industries. Could you walk us through the key milestones that have shaped KC Tech's journey to this point?

KC Tech Headquarter

KC Tech was founded in 1987, originally as a trading company. At that time, we imported parts and equipment from the United States and Japan and provided installation services to Korean clients. This business model, commonly known in Korea as a “commission agency,” allowed many companies to generate solid revenues as the semiconductor industry expanded. However, very few made the transition from trading to manufacturing.

Our chairman took the bold step of shifting our business focus to manufacturing—a decision that proved to be a turning point. He was always modest, often attributing our success to luck, but the reality is that it was made possible by his leadership and the dedication of our employees. Unlike many peers that remained in trading or failed during the transition, we successfully evolved into a full-fledged manufacturer.

We went public in 1997—a year that holds special significance, as it coincided with the Asian Financial Crisis. While many companies were going bankrupt and mass layoffs were happening across Korea, we managed not only to survive but to grow. In 1999, we entered the display industry, beginning the development of wet stations and coaters. The rapid expansion of the display market allowed us to serve a wide range of clients, laying the foundation for our business in the early 2000s.

In 2003, we began R&D on slurry technology, producing samples by 2006 and achieving mass production by 2009. That same year, we acquired CMP equipment technology from Doosan Mechatronics, just before the Lehman Brothers crisis hit. Despite the timing, we successfully rebuilt and improved the acquired technology. By 2011, we had developed and launched our own CMP products.

To summarize: KC Tech began in 1987 as a trading company and successfully transitioned into a leading equipment manufacturer. Through continuous investment in slurry and CMP technologies, we’ve grown into one of Korea’s most competitive providers in these fields. This success is the result of tireless work by our employees, but also of our founder’s philosophy, which continues to guide us today. As he often said, “Don’t sell a product—sell trust. Sell yourself.” Building long-term relationships with clients, rather than chasing short-term profits, has always been a core principle for us.

It's worth noting that many of our key strategic moves came during economic crises. When we entered the LCD equipment market in 1999, Korea was still dealing with the aftermath of the 1997 Asian Financial Crisis. And when we acquired the CMP business in 2009, the world was reeling from the global financial crisis. But these difficult environments became opportunities for us. Our ability to turn adversity into strength remains one of our core competitive advantages.

KC Tech’s strategy of developing both equipment and materials is quite unique in this industry. Even your major competitors tend to focus on equipment alone. Your integrated portfolio, from cleaning systems to CMP equipment to slurry, gives you a broad range of offerings to the same customers. How competitive is this business model?

From an outside perspective, it may seem like KC Tech provides bundled solutions—equipment and slurry together—to create synergy. However, the reality is more nuanced due to the complexity of semiconductor technology. True synergy doesn't come from packaged solutions, but from our deep integration of product development and R&D.

Because our clients have highly specialized and constantly evolving needs, we must tailor both our equipment and materials to their requirements. Each piece of equipment may require specific slurry formulations, and how the slurry interacts with the tool directly impacts the outcome. During the equipment development phase, we test numerous slurry types to understand their behavior under different process conditions. Conversely, when we develop slurries, we test them using the tools we've designed in-house, allowing us to fine-tune both simultaneously. This level of cross-functional insight gives us a significant edge.

Another strength is the tight relationship we maintain with our clients. Equipment and slurry are both sensitive and critical components, and challenges inevitably arise. But since we work with the same clients across both product lines, communication is seamless and collaboration is natural. Over time, this has helped us build deep trust and long-term partnerships.

One of our key advantages is the speed at which we analyze and respond to process challenges. For instance, during the development of our CMP, systems and modules, we tested various slurry types. We monitored how each slurry impacted wafer defect levels, removal rates, and other performance indicators. Because this was all done internally, we could rapidly correlate cause and effect.

A good example of this is our pad surface temperature control module. We were able to analyze in-house how controlling the pad surface temperature influenced physical composition and behavior of slurries during polishing, leaving different film profiles and surface defects. Being able to generate and apply this kind of insight quickly, without relying on external partners, has been instrumental to our competitiveness.

You've recently been involved in advanced development work, including equipment for next-generation chip cleaning processes and technologies that support shrinking node sizes for high-performance semiconductors. These are just a few examples of your strong track record in innovation. Looking ahead, which products or technologies in your current portfolio do you expect to drive the most growth?

We see two flagship products as the primary drivers of our future growth: CMP slurry and equipment.

Let me begin with slurry. Our Ceria-based slurry is currently our core product and has been developed entirely with our own proprietary technology. Ceria slurry is widely used in key CMP processes, and it is known for its superior performance in terms of key parameters such as dishing control, removal rate, and minimizing scratches. Thanks to these strengths, our slurry products are recognized and trusted not only by leading Korean conglomerates but also by major global clients.

Slurry lineup

In addition to Ceria for silicon-oxide removal, we have also developed slurries for tungsten and polysilicon applications. Looking ahead, we plan to focus on developing copper slurries and other advanced formulations. On the equipment side, our next flagship product for the next five to ten years is undoubtedly the Ventus CMP system. We’ve just finalized its development, and it represents a significant upgrade from our previous-generation equipment. We are confident that it will play a central role in driving our global success.

Ventus

Ventus brings a 20% improvement in productivity over our previous CMP systems, which positions us competitively against global rivals. In terms of planarization performance, it delivers substantial improvements in quality and consistency. The system is equipped with a multi-zone polishing head for precision control and includes a modular cleaning system with up to 12 configurable chambers. These after-polish cleaning chambers can be customized to client specifications. To our knowledge, no other company offers a 12-chamber configuration within a CMP system. This is a feature unique to KC Tech.

You mentioned that KC Tech’s core philosophy, from the chairman to your leadership, has been centered on trust. Could you elaborate on your international strategy for building trust with future global clients as you expand your product footprint?

As mentioned earlier, approximately 40% of our sales come from materials, while the remaining 60% come from equipment. Of that 40% in materials, 30% is from overseas markets. We’re already working with GlobalFoundries, Intel, and CXMT, and we currently supply products to them.

To further strengthen our global business, we plan to open a new office in the United States. This will significantly enhance both our product quality and customer responsiveness. Our goal is to offer service levels comparable to what we already provide in Korea. For the equipment side, our strategy is to work exclusively with major industry players. Focusing on a select group of partners allows us to deliver highly specialized, verified solutions, such as our Ventus system, that have already proven their value in Korea.

We also aim to expand into both the U.S. and Japanese markets. While U.S. headquarters are typically located domestically, manufacturing and engineering operations are spread across regions like Taiwan, Japan, and Singapore. These regions represent key opportunities for KC Tech as we grow our global footprint.

You mentioned plans to open an office in Oregon. What is the timeline for that expansion, and is Oregon still the target location?

Yes, we are seriously considering Oregon as the location for our U.S. office, largely due to its proximity to Intel’s operations. Our current target is to open the office by the end of 2025. Of course, there are still several moving parts, including marketing strategies and operational planning, but we are working to establish a system that allows for sample testing, client validation, and product deployment directly from that location. While the final details have yet to be confirmed, we are hopeful that the Oregon office will be fully operational by late 2025.

In 2024, KC Tech recorded revenue of USD 275 million, marking 38% year-on-year growth. With both the semiconductor and display industries showing signs of recovery from last year’s downturn, the company appears well-positioned for continued expansion. How do you envision KC Tech’s growth trajectory over the next three years?

I would be a very happy man if I had the ability to predict the future with certainty. Unfortunately, I don’t have that power. But when I look at our current situation, I remain optimistic. The business environment is evolving, and if these changes align with our projections, we could see very positive outcomes. That said, nothing is guaranteed. What we can control is doing what needs to be done, and if we stay focused, I truly believe the future is bright for us.

When I speak with peers in other sectors, such as the display industry, they tell me they’re facing a tough time. Investment cycles are slow to rebound, and it’s the same story in the secondary battery industry, where the so-called “chasm” phase has created a lull in investment. In contrast, the semiconductor industry still offers significant room for expansion.

This is especially true in the CMP equipment sector. Globally, the market potential is substantial, and even within Korea, there’s still considerable market share up for grabs. If we continue to deliver competitive products, earn client trust, and strengthen our capabilities, I believe KC Tech has the potential to grow into a truly major player.

One of my personal goals is to hear our clients say, “We can’t operate without KC Tech’s products. They are irreplaceable, and we’re glad we chose them.” Enhancing our product features and improving our responsiveness will be key to achieving that level of recognition, and ultimately, to becoming a global leader in this space.

Let’s imagine we revisit KC Tech in 2027 for your company’s anniversary. What achievements would you like to look back on and say, ‘We did this’?

There is still so much more we want to achieve, and the scope for growth remains vast. By 2027, I hope KC Tech has firmly established itself as a global-scale player, particularly in next-generation technologies like HBM and BSPDN. These are closely tied to the CMP process, and as the number of CMP steps increases, the need for more advanced equipment also rises. If the market moves in that direction, we believe we can claim a significant share.

That said, 2027 isn’t far off, it’s just two years from now, so it may be a bit early to expect everything to fall into place. Typically, it takes about three years for new equipment to go through the qualification process with global clients. But if, by 2027, we’ve secured major qualifications and begun mass production of our CMP systems, that would be a major milestone and a sign of our growing influence.

We provide both tools for auxiliary processes and core CMP process tools as well. This depth in our portfolio strengthens our position and opens up further opportunities to become a leading player in the global market.

How We Work at KC Tech poster

Beyond technology and product development, I believe a strong company culture is what truly shapes a company’s future. At KC Tech, we’re committed to creating a supportive, employee-centered environment, one where people feel motivated and proud to work. We have an internal guideline called How We Work at KC Tech, and what makes it special is that it wasn’t created by management or HR, but by our employees themselves. It reflects six core values shared across the KC Group and serves as a cultural foundation that fuels the passion and unity within our team.

For more details, explore their website at https://www.kctech.com/eng/#0