HachiTech held an IPO briefing on the 5th in Yeouido, Seoul, announcing plans to diversify its semiconductor sensor business from smartphones to robots, data centers, and electric vehicles as it prepares for KOSDAQ listing. The company aims to reduce mobile revenue share from 85% in 2024 to 40% by 2030 while expanding into industrial and consumer electronics segments. HachiTech, a fabless semiconductor firm established in 2017 after acquiring the sensor business from Magnachip Semiconductor, has grown revenue from 3.9 billion won in 2022 to 14.1 billion won last year, though it recorded an operating loss of 2.395 billion won last year due to increased R&D hiring.
HachiTech Expands Smartphone Sensor Market Share to 43%
CEO Choi Seong-min stated at the briefing that HachiTech has internalized the entire process from semiconductor magnetic sensor and environmental sensor development to mass production technology. The company has secured over 60 customer groups across more than 20 application fields.
In the mobile sector, HachiTech supplies products to Samsung Electronics, Oppo, and Vivo. According to the company, its market share within a major domestic smartphone manufacturer increased from 0.3% in 2022 to approximately 43% last year. Cumulative sensor shipments since establishment have exceeded 700 million units.
Magnetic sensors are applied to foldable phone hinge angle measurement, MagSafe magnet detection, and camera gimbal functions. CEO Choi explained that one sensor is installed per foldable phone hinge, HachiTech chips detect whether MagSafe magnets are attached, and camera gimbal functions adopted by Chinese smartphone manufacturers require approximately six sensors per device due to multiple joints. He added that initial mass production of gimbal sensors has started.
In the second half of this year, the company began supplying temperature sensors to enterprise SSDs and memory modules of a domestic memory company. HachiTech plans to expand sales to overseas customers based on this supply experience. The company is also developing encoder ICs that measure motor and joint rotation angles for robotics and industrial automation, and pursuing current sensors for data centers, energy storage systems, and electric vehicles as new businesses.
Company Records Operating Loss of 2.395 Billion Won Amid R&D Investment
HachiTech's revenue increased from 3.9 billion won in 2022 to 14.1 billion won last year. However, the company remains unprofitable on an annual basis. Operating loss expanded from 300 million won in 2024 to 2.395 billion won last year. The company also recorded an operating loss of 539 million won in the first quarter of this year.
Company officials explained that personnel costs increased due to large-scale recruitment of R&D staff from Magnachip Semiconductor to expand the sensor business. HachiTech targets reducing annual operating loss to approximately 300 million won this year, then achieving profitability by 2027 with operating profit of approximately 4.3 billion won.
The company plans to change its mobile-concentrated revenue structure. HachiTech aims to lower mobile revenue share from 85% in 2024 to 40% by 2030. During the same period, industrial and consumer electronics shares will each increase to 26%, while mobility share will expand to 8%.
CEO Choi stated that although current mobile revenue share is high, over 50% of R&D capacity is being invested in non-mobile fields, adding that by 2030 the company will create a structure where mobile, industrial, and consumer electronics business segments are balanced. HachiTech will invest funds raised through the IPO in R&D, including securing R&D personnel, new product development, photomask production, wafer production, and packaging/testing. Net inflow funds excluding issuance costs based on the lower offering price are approximately 22.3 billion won.
HachiTech Offers 1 Million Shares with Listing Scheduled for the 25th
HachiTech is offering a total of 1 million shares. The proposed offering price range is 23,000-28,000 won, with an offering size of 23 billion-28 billion won. Institutional demand forecasting will be conducted until the 7th, followed by public subscription on the 12th-13th. The scheduled listing date is the 25th, and the lead underwriter is DB Securities.
Lock-up shares after listing amount to approximately 3.4 million shares, representing 61.6% of total shares. In contrast, shares available for circulation immediately after listing total 2.12 million shares, representing 38.4% of the total. Based on the upper offering price, this represents approximately 59.3 billion won, leading to assessments that initial circulating volume is somewhat high.
FAQ
What business did HachiTech acquire when it was established in 2017?
HachiTech was established in 2017 after acquiring the sensor business from Magnachip Semiconductor. The company inherited sensor technology and mass production experience that had been passed down through LG Semiconductor, Hynix Semiconductor, and Magnachip Semiconductor.
How does HachiTech plan to reduce its mobile revenue concentration by 2030?
HachiTech aims to reduce mobile revenue share from 85% in 2024 to 40% by 2030. During the same period, the company plans to increase industrial and consumer electronics shares to 26% each, and expand mobility share to 8%. The company is investing over 50% of R&D capacity in non-mobile fields including robots, data centers, and electric vehicles.
When is HachiTech's KOSDAQ listing scheduled and what is the offering size?
HachiTech is offering 1 million shares with a proposed price range of 23,000-28,000 won, for a total offering size of 23 billion-28 billion won. Institutional demand forecasting runs until the 7th, public subscription takes place on the 12th-13th, and the listing is scheduled for the 25th. DB Securities serves as lead underwriter.
