Kim Kyung-eun HANYANG ENG CO.,LTD.(045100), , , and were cited as companies set to benefit. SHINSUNG E&G(011930) UNION SEMICONDUCTOR EQUIPMENT&MATERIALS(036200) Global Standard Technology Co., Ltd.(083450)

Kang Min-gu, an analyst at IBK Investment & Securities, stated in a report on the 23rd, “Orders for semiconductor factory investments typically follow the sequence of structural work, cleanrooms and utilities, sub-fabs, and process equipment,” adding, “Earnings surprises from engineering, procurement, and construction (EPC) firms signal that orders for subsequent phases are imminent.”

The previous day, SamsungE&A announced that its third-quarter consolidated operating profit reached 500.6 billion won, a 183.6% increase year-over-year. This figure exceeded market expectations of 252.3 billion won by 98.4%. Revenue also rose 45.8% year-over-year to 2.9 trillion won. Advanced industry projects—including SamsungElectronics’ semiconductor factories—and large-scale chemical engineering projects drove these results.

SamsungE&A raised its annual order intake forecast from 12 trillion won to 19 trillion won and its operating profit forecast from 800 billion won to 1.4 trillion won. As of the end of the third quarter, the order backlog in the high-tech industry sector stood at 8.9 trillion won. Revenue growth is expected to continue, driven primarily by SamsungElectronics’ P4 and P5 facilities in Pyeongtaek and the Taylor project in the U.S.

IBK Investment & Securities interpreted this earnings surprise as a sign that expanded semiconductor capital expenditures are beginning to be fully reflected in the company’s performance. The firm analyzes that semiconductor plant expansions will continue for an extended period, as the concentration of DRAM production capacity on expanding High-Bandwidth Memory (HBM) production has led to supply shortages even in general-purpose memory.

In fact, following the completion of its Pyeongtaek Plant 4 (P4), SamsungElectronics has resumed construction on Pyeongtaek Plant 5 (P5), which had been suspended in 2024. The company plans to invest over 60 trillion won in P5 to build the world’s largest single semiconductor production facility.

Expansion schedules are also being accelerated. SamsungElectronics is currently discussing with its partners a plan to move up the equipment installation timeline for Phase 1 of P5 from the originally scheduled July–August 2027 to May–June 2027. The start of operations for the first factory in the Yongin Semiconductor Cluster has also been adjusted to 2029, which is 1–2 years earlier than initially planned.

Consequently, orders for cleanrooms and utility facilities—which follow the construction of the semiconductor plant—are expected to increase. Cleanrooms are facilities that remove contaminants such as dust to maintain a clean environment during the semiconductor production process, while utilities refer to the infrastructure that supplies gases and chemicals required for the manufacturing process.

Related companies are already securing orders. SHINSUNG E&G has secured contracts worth approximately 37 billion won related to Phase 1 of SamsungElectronics’ P5 project, including system sealing work and the supply of cleanroom products. SHINSUNG E&G is a manufacturer of fan filter units (FFUs) for purifying air inside cleanrooms and equipment fan filter units (EFUs).

HANYANG ENG CO.,LTD. has also signed a contract worth 148.1 billion won with SAMSUNG C&T CORPORATION for general piping work in the P5 Phase 1 cleanroom. Researcher Kang predicted, “It is highly likely that this will lead to phased contract awards, extending to the Central Chemical Supply System (CCSS) and secondary piping that connects to the equipment.”

Improved earnings are also expected from sub-fab equipment manufacturers that support semiconductor production equipment. A sub-fab refers to the space located on the floor below the cleanroom, which is the semiconductor production facility. Various auxiliary facilities are installed there, including scrubbers that treat harmful gases generated during the manufacturing process, chillers that regulate equipment temperature, vacuum pumps, and gas supply systems.

Researcher Kang explained, “UNION SEMICONDUCTOR EQUIPMENT&MATERIALS and Global Standard Technology Co., Ltd., leading sub-fab equipment manufacturers, are projected to post their best-ever earnings this year,” adding, “While they were heavily reliant on a single semiconductor plant in the past, this time, with multiple projects proceeding simultaneously, we expect to see repeated cycles of capacity expansion and a rally in new orders.”