[Edaily Reporter Park Jung-Soo ] South Korea’s machine tool industry is showing signs of recovery this year, driven by strong overseas orders. Demand for ultra-precision machining equipment is also on the rise, fueled by a combination of increased investment in data centers—driven by the expansion of the artificial intelligence (AI) industry—and the expansion of semiconductor production capacity.
According to the Korea Machine Tool Industry Association on the 24th, total domestic machine tool orders from January to April this year amounted to 1.1924 trillion won, an 11.2% increase compared to the same period last year. Of this total, overseas orders surged by 23.3% to 798.1 billion won, driving overall growth. For the month of April alone, total orders reached 3165억 won, up 9.8% from the same month last year, while overseas orders rose 25.7% to 2028억 won.
Industry observers view this recovery in orders as going beyond a simple economic rebound and as being linked to a shift in the global manufacturing investment paradigm. This is because demand for high-precision manufacturing—such as data center cooling systems, semiconductor inspection equipment, and components processed from advanced materials—is rapidly increasing as major countries worldwide expand investments in AI infrastructure, semiconductor equipment, and cutting-edge manufacturing in the automotive and aerospace industries. Consequently, analysts suggest that the machine tool market, which precision-machines these components, is also facing medium- to long-term growth opportunities.
SMEC CO.,LTD(099440), a company specializing in machine tools and robotic automation solutions, is also expanding its presence in the semiconductor equipment sector in line with these market changes. Following a recent order worth 220억 won for semiconductor equipment, SMEC CO.,LTD has signed an additional supply contract worth 104억 won, continuing its trend of business expansion in the semiconductor sector. This is seen as evidence that orders for semiconductor equipment are not merely a one-time achievement but mark the company’s entry into a phase of sustained business expansion.
Over the past decade, SMEC CO.,LTD has continuously conducted R&D on machine tools specialized for the semiconductor industry, accumulating expertise in semiconductor equipment. These efforts began to yield tangible results in 2024, and in 2025, annual orders related to the semiconductor sector reached approximately 200억 won. As of June 2026, semiconductor-related orders had increased by approximately 3.5 times compared to the previous year’s annual total, leading to assessments that semiconductor-specialized equipment is establishing itself as a new growth driver for SMEC CO.,LTD.
SMEC CO.,LTD’s semiconductor-specific machine tools demonstrate strong competitiveness in the machining of ceramic materials used in the etching process—the fourth step in the semiconductor front-end process. Ceramics are a critical material where even minute deviations can affect process quality and production yield, requiring a high level of control technology and machining stability. In addition to ceramics, active supply discussions are underway with clients in the fields of quartz and silicon material machining.
SMEC CO.,LTD official stated, “Demand for ultra-precision machining equipment is rapidly increasing in line with expanded investment in AI data centers and semiconductor facilities,” adding, “Through R&D conducted over the past 10 years, SMEC CO.,LTD has accumulated technical expertise in semiconductor-specific equipment and on-site response know-how. Building on this foundation, we will continue to expand our order intake in the market for machining advanced materials such as ceramics, quartz, and silicon.”