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].