Industry Overview - The South Korea semiconductor parts industry is experiencing significant growth, driven by an AI-led "Super Cycle" in the overall semiconductor sector, with revenue projected to reach KRW 9.754 trillion in 2024, reflecting a 12.5% year-on-year increase [1][2]. Growth Drivers - The growth is attributed to a base effect following the downturn in 2023 and the rapid expansion of the AI semiconductor sector, with double-digit growth expected to continue into 2025 [2]. - A common factor behind the strong growth of leading domestic semiconductor parts companies is the increase in semiconductor production in Korea, China, and Taiwan, alongside qualitative improvements driven by AI-led trends toward process miniaturization and higher complexity [6]. Semiconductor Manufacturing Processes Photolithography Process - Demand for blank masks and pellicles is increasing as Chinese semiconductor manufacturers invest in advanced processes, benefiting Korean suppliers like FST and S&S Tech [7]. Etching Process - The transition from conventional silicon materials to silicon carbide (SiC) for ring components is enabling companies such as KNJ and TCK to expand their market presence, while Mecaro has increased exports amid rising investments in memory semiconductor equipment in China [8]. Testing Process - Components used in testing, including probe cards and sockets, are benefiting from favorable market conditions, with strong performance from South Korean companies like SEMCNS, TSE, and Tiger Electronics [9]. Packaging Process - Package substrates are emerging as a core growth driver, with companies like Samsung Electro-Mechanics and LG Innotek expanding their supply of BGA substrates for PCs and smartphones, as well as high-value segments like AI/server and automotive FC-BGA substrates [10]. High-Growth Companies - QYResearch Korea identified 21 companies achieving over 8% year-on-year revenue growth in 2024, including KC Parts Tech, SEMCNS, and Mecaro, with notable products spanning various semiconductor manufacturing processes [5][11]. Revenue Performance - Key companies and their projected revenues for 2024 include: - KC Parts Tech: KRW 37.439 billion, 100.87% YoY growth - SEMCNS: KRW 53.315 billion, 72.35% YoY growth - Mecaro: KRW 62.858 billion, 62.91% YoY growth - TSE: KRW 220.995 billion, 62.05% YoY growth - Samsung Electro-Mechanics: KRW 2,034.657 billion, 18.47% YoY growth [11].

Summary of Key Points from Conference Call Records Industry Overview - **Solid-State Battery Sector**: Increased funding from mid-sized public institutions, with the Ministry of Industry and Information Technology's mid-term review results expected to drive future growth. Focus on incremental value, competitive landscape, and supply chain companies is recommended [1][4][5]. - **Semiconductor Equipment Industry**: Entering a capital expenditure upturn, with key factors being storage price increases and breakthroughs in advanced processes. Prioritize sectors with growth potential, low domestic production rates, and significant market share improvement potential [6][24]. Core Insights and Arguments - **Solid-State Battery Development Timeline**: - 2025: Technical breakthroughs and product realization. - 2026: Production line construction and supply chain confirmation. - 2027: Expected mass production with demand potentially reaching 200-300 GWh by 2030 [1][10]. - **Production Equipment Changes**: Solid-state battery production equipment differs significantly from liquid batteries, with capital expenditures (CAPEX) expected to be over five times higher for solid-state production lines [1][12]. - **Material Upgrades**: The largest incremental value in solid-state batteries comes from electrolytes, with other product upgrades expected to drive average selling price (ASP) increases [1][13]. - **Government Support**: The Ministry of Industry and Information Technology is providing clear support for the solid-state battery industry, with subsidies expected to accelerate development and production [7][8]. Notable Developments - **Domestic and International Company Progress**: Leading companies like CATL, BYD, and others are moving past the laboratory stage into pilot testing and demonstration phases. Internationally, companies like Panasonic and Samsung are also targeting 2027 for mass production [8][9][11]. - **Market Demand Forecast**: By 2030, demand for solid-state batteries is projected to reach 200-300 GWh, with a significant portion driven by passenger vehicles [10]. Additional Important Insights - **Electrolyte Production**: The production of lithium sulfide is critical, with purity, carbon content, particle size, and metal impurities being key factors in the manufacturing process [15][16]. - **Aluminum-Plastic Film Requirements**: Solid-state batteries require higher quality aluminum-plastic films, with expected costs significantly higher than those for liquid batteries [18]. - **Challenges in Anode Materials**: The focus is shifting towards lithium metal anodes and non-anode technologies, with significant advancements expected in the coming years [19][20]. - **Collective Industry Trends**: The semiconductor industry is experiencing a capital expenditure upturn, with domestic wafer manufacturers like SMIC achieving high capacity utilization rates [24][25]. Investment Opportunities - **Solid-State Battery Equipment**: Companies like Nako, which have developed key solid-state production equipment, are highlighted as potential investment opportunities due to their market share and profitability forecasts [12]. - **Semiconductor Materials and Equipment**: The increasing demand for advanced materials and equipment in the semiconductor sector presents significant investment opportunities, particularly in the context of rising domestic production rates [33][34]. This summary encapsulates the critical insights and developments within the solid-state battery and semiconductor equipment industries, highlighting potential investment opportunities and market trends.