Cleanroom Precision in Every Detail: Shinsung E&G

Recently, president Trump has accelerated the dynamic, pushing more suppliers to be more agile and flexible to accommodate their clients’ demands. As this is a part of the definition of being a Korean company, what are the challenges and opportunities that you’ve seen with these dynamics, and how can you seize these opportunities?

This is the first time in about 20 years that we are facing such a situation. Back then, overseas projects surged, but Korean companies lacked the experience and technology to fully handle them.

However, we have been expanding overseas for more than 20 years, and during that time, we have accumulated a wealth of experience. In particular, as digitalization has progressed rapidly, companies are now able to respond to and adapt to changes in the global environment much more quickly.

At present, we are well-positioned to manage these challenges effectively.  However, in the solar panel business, competition with global rivals remains fierce.

In semiconductors, our ability to draw on Korea’s advanced domestic supply chain enables us to operate production lines that are not only highly efficient, but also globally benchmarked for competitiveness. Compared to 20 years ago, the accumulation of such experience and capabilities has enabled us to respond at a much higher level, and this is also true for many companies similar to ours.

Meanwhile, the restructuring of global supply chains has brought new changes in certain regions, presenting us with a variety of challenges. Nevertheless, thanks to the flexibility mentioned above, we are fully meeting the diverse demands of our customers. We regard these global shifts not as challenges, but as catalysts that will drive the next stage of our growth.

In the recent years, through collaboration with Samsung and SK for their new overseas plants, SMEs have been able to taste international market and localization of their technology. But they often stop at the door of none-Korean companies. You have gone beyond that, and is already strongly partnering with international companies as well. What experience have you acquired, working with both sides?

Our journey of global expansion often began alongside the international ventures of major Korean corporations. Yet, this process was far from seamless, requiring us to navigate considerable challenges with determination and adaptability. However, these difficulties arose less from technical aspects and more from differences in “operating systems,” such as business practices, procedures, policies, and certification frameworks in each country.

In carrying out overseas projects, we have sought to take as flexible an approach as possible through collaboration with local partners.

This has allowed us to adapt quickly to the unique characteristics of each country, while also accumulating valuable knowledge and experience along the way. Thanks to this accumulation, we have now built a foundation that enables us to collaborate with local companies in various countries far more naturally and confidently.

Shinsung E&G’s Overseas Subsidiaries

If we look at the semiconductor industry, we expect it to be a trillion dollar industry by the end of the decade. The Western market has tried to catch up with TSMC, and Taiwan has also tried to become a hub with the likes of OSAT and a kind of backend industry. Indonesia and Brazil could also be seen as some secondary regions, regarding this. Could you explain the evolution of the semiconductor industry and how it's impacted your company? Also, where do you see your company going, from here?

In the past, Europe, Japan, and the United States were the leading powerhouses of the semiconductor industry. In recent years, Korea and Taiwan have firmly established themselves as industry leaders, while India and Malaysia are steadily strengthening their positions in the global semiconductor landscape. Although the traditional leaders once experienced a period of relative stagnation, they have recently been significantly increasing their interest and investment in the semiconductor sector once again.

In Korea’s case, the semiconductor industry has steadily developed since the 1980s, enabling the country to build a solid technological foundation and capabilities over a long period of time. Unlike in the past, when semiconductors were used mainly for memory, their applications have since expanded greatly to include computers, consumer electronics, automobiles, and even artificial intelligence (AI). This points to a positive outlook for continued growth in demand.

Korea and Taiwan, in particular, are also focusing on the legacy semiconductor sector, with many local brands actively participating in this area. We too have accumulated substantial capabilities over the years, positioning ourselves at the forefront of this industrial advancement. Notably, we are aggressively targeting niche markets overlooked by European and American companies by enhancing legacy semiconductors.

According to numerous reports, the global semiconductor market is highly likely to surpass one trillion dollars by 2030, and its areas of application are expected to diversify even further. The development of the legacy semiconductor field is also expected to accelerate, and to support this, there has been a steady increase in data center-related requests from a wide range of domestic and international companies.

Shinsung E&G’s Cleanroom

Regarding your ambitions in the high-tech, solar power and battery industries, do you aim to replicate the strategies that you implemented in the semiconductor industry that saw great success for you?

As with all industries, predicting the future is difficult, and inherent risks are unavoidable. However, the semiconductor and battery industries, in particular, are showing highly dynamic changes. In semiconductors, batteries, and future fields such as data centers, significant fluctuations are clearly expected.

Fortunately, we do not directly manufacture final products ourselves. Instead, we play the role of building the environments and infrastructure required by companies that produce final products such as electric vehicles or cleanrooms. Industry trends are not directly tied to our business; rather, we serve as an intermediary support layer. Therefore, it is more accurate to say that market volatility has a greater impact on our customers who produce the end products.

That said, in order to manufacture products such as electric vehicles, investments in cleanrooms and related infrastructure must be made in advance of actual product production. Of course, there are many uncertainties in this process. Nevertheless, demand is expected to rise in semiconductors, artificial intelligence (AI), autonomous vehicles, and various battery industries, and we therefore anticipate overall growth across the industry.

When considering major investments that are being made into the sectors that you are involved in, in advanced countries, such as US, France, or Germany. With global changes like this, do you believe you will find more opportunities in these advanced countries, or do you think there is an opportunity to seize more investments in developing countries?

Above all, as is commonly applied across all industries and companies, localization and on-shoring are major megatrends. However, in the semiconductor industry, advanced infrastructure such as power and clean water is essential. For this reason, business expansion in some developing countries—where such infrastructure is insufficient—faces significant challenges. Consequently, we expect a higher probability of success in advanced countries that already have the necessary infrastructure in place.

In contrast, secondary batteries (for example, EV batteries) are primarily used in vehicles, and unlike small semiconductor components, they are bulky and heavy, making transportation difficult. As a result, battery production plants must be located close to the final product manufacturing sites.

In practice, many battery manufacturers are building plants near automobile production hubs, and in China, the rapid growth of the electric vehicle industry has been accompanied by a fast-developing battery sector. In this sense, some developing countries are considered to provide favorable environments for the expansion of the secondary battery industry.

Data centers require resilient power infrastructure, dependable energy sources, and steady demand to operate at scale. In the United States, significant demand has already materialized, prompting leading companies to invest aggressively in delivering clean, stable, and scalable energy solutions.

To shift the focus a little bit and talk about Shinsung E&G directly, what have been some key milestones that have helped shape the company to be what it is today? Alongside that, what sets Shinsung E&G apart, and what makes it unique, compared to its competitors?

Shinsung E&G was founded in 1977, coinciding with the period when Korea’s shipbuilding industry began to develop in earnest. At that time, we took our first step by developing dehumidifiers used in shipyards, which later became the technological foundation for today’s dry rooms and the secondary battery industry.

In 1991, we successfully developed and commercialized domestically produced Fan Filter Units (FFUs)., and with the growth of the display and LCD industries in the 2000s, the application of cleanrooms expanded significantly.

During this period, we began to focus in earnest on mass production and process automation, and in 2007, we expanded our business scope into energy-related fields, including solar power. Although we faced many challenges in the global competitive environment, this journey instead became a foundation for accumulating valuable experience and achievements in the field.

In 2016, through our smart factory initiative, we automated the majority of our production processes, significantly enhancing both efficiency and capacityOur factory in Yongin supplies 50% of its power from solar energy and is capable of producing the FFUs required for FAB processes within just one week. Since its implementation, we have significantly strengthened operational efficiency while expanding our production capacity to a level more than twice its previous scale.

This technological advancement is the result of continuously strengthening our capabilities to meet the demanding requirements of major domestic and global corporations. In particular, by satisfying the strict standards of Samsung Electronics and SK hynix, we have been able to make remarkable improvements in both quality and technology, while also accumulating the know-how needed to adapt to rapidly changing industrial environments.

Furthermore, the growing global interest in the energy industry—especially solar energy—has prompted us to explore deeply how to optimize our core businesses in cleanrooms and secondary batteries. Thanks to these ongoing efforts, our technologies have gained worldwide recognition.

Key Cleanroom Equipment of Shinsung E&G

When it comes to the Cleanroom, what are some key factors in this environment that have distinguished Shinsung E&G and has made it a very ideal partner, when it comes to manufacturing Cleanrooms?

In the early days of the semiconductor industry, Korea was not among the leading powerhouses such as the United States or Japan. As a result, we focused on the localization of technology, and in the process, we directly developed a wide range of parts and technologies. Today, customization has become a very important competitive factor.

For example, the FFUs we manufacture are larger and more efficient than conventional equipment, and they are custom-built to meet the specific requirements of our clients. In addition, our EDM (Equipment Dehumidify Module) system delivers integrated solutions, controlling not only airborne particles but also humidity, and more recently, we have incorporated wireless control technology. These technologies were developed independently, separate from those originating in Japan or the United States, allowing us to accumulate significant technical expertise and experience along the way.

Building automation systems tailored to unique needs was by no means an easy task, but we successfully achieved it. We now have a system capable of producing customized FFUs even in automated environments, a differentiated capability that competitors cannot easily replicate.

At the core of our automation system are collaborative robots (COBOTs) that can handle various sizes and functions, maximizing both flexibility and efficiency in production. This achievement is regarded as one of our greatest successes in optimizing FFU manufacturing.

Shinsung E&G’s COBOTS

Do you expect the FFUs and Cleanrooms to be the main drivers of the company in the coming years?

FFUs play a pivotal role in semiconductor and cleanroom environments. By contrast, the secondary battery industry relies heavily on dry rooms, while the data center sector depends on large-scale cooling systems such as Fan Wall Units to maintain operational reliability.

Just as FFUs have driven the growth of the semiconductor industry, the rapid expansion of the secondary battery and data center industries is expected to fuel significant advancement in dry rooms and panel units in the future.

In addition, the Jeungpyeong AI Air Solution Center is set to serve as a core strategic hub driving future innovation and growth.

In recent years, we have seen really promising signs from your clean energy initiatives, particularly in the solar panel industry. Are you aiming to expand even more and get more projects worldwide?

Our solar business began with solar cells, but facing the intense global competition, we redirected our efforts toward building differentiated strengths and long-term competitiveness. As a result, we shifted our focus toward energy fundamentals: maximizing efficiency in generation, storage, and utilization. We are deeply considering how to utilize not only solar energy but all forms of energy more effectively.

Our Yongin Smart Factory exemplifies this approach, sourcing 50% of its electricity needs through an integrated system of solar power and energy storage (ESS). Through extensive analysis and power grid management, we systematically study how to use solar energy—whose output fluctuates greatly due to climate and other factors, efficiently.

RE100 (the global initiative for 100% renewable energy) is an important trend in which many global companies and governments are actively participating. We also believe it is essential to develop a platform that enables the most efficient utilization of all energy sources, including renewables. Solar panels, in this regard, are only one piece of the much larger puzzle.

Shinsung E&G’s Solar Module

Has providing a complete solution to your customers proven to be a major factor when competing with low-cost Chinese competitors? And has it been a key driver when providing the solar modules?

In the solar module business, intense global competition, especially from China, remains an unavoidable reality of the market. In contrast, in the fields of eco-friendly energy platforms and energy management solutions, there is still no fully established system worldwide, and efforts are ongoing to improve their completeness.

Therefore, from the perspective of the full utilization of energy, we are not in direct competition with global companies. This is because the software used and the methods of energy utilization differ significantly from country to country.

To operate such a system at a high level of completeness within Korea, a deep understanding of the system itself is absolutely necessary. In this context, we believe that, at present, there are not many companies directly competing with us.

With the Jeungpyeong factory where you produce AI based air equipment, could you explain this name and the technology some more?

The term “AI solution” may sound somewhat grand, but to put it simply, we are currently manufacturing a variety of products such as dehumidifiers, Outdoor Air Controllers (OACs), and our proprietary product, V-Master, designed to remove harmful volatile organic compounds (VOCs).

In the past, the same control system was applied across all production processes, but now, by utilizing artificial intelligence (AI) and machine learning, we provide customized solutions that are optimized for each piece of equipment.

Based on these technologies, we are directly manufacturing products while also receiving significant orders from other companies. Over time, we continue to refine these technologies and steadily expand their scope of practical application.

Shinsung E&G’s AI Air Solution Center

Looking ahead, you mentioned wanting to grow locally and with international partners. Which kinds of partners would be ideal to promote growth for your business, in the future?

Since our equipment is manufactured domestically and then installed overseas, we are seeking local partners in Korea who can support equipment installation.

From a solutions perspective, we are also looking for overseas partners who can help us expand into global markets, reduce component costs, and enhance price competitiveness.

However, our top priority is securing skilled local engineers in the markets we aim to enter, particularly in Southeast Asia. We seek professionals capable of applying our advanced systems and equipment in new facility construction, while also ensuring the ongoing maintenance and optimization of these technologies.

The goal of the report is to unite the voices in Korea, in the advanced industries. What would be a final one or two sentences that you would like the readers to see?

For the past 50 years, we have never stopped moving forward. With that same spirit, we will continue advancing together to help build a better world. Thank you very much.

For more information, visit their website at https://www.shinsungeng.com/en/