Jusung Engineering
Korean maker of ALD deposition tools for memory chip fabmakers like Samsung and SK Hynix.
On the record
Checkpoint: Second or third named customer order for the ALG tool, needed to confirm the FY2026 profit rebound forecast
The call
Jusung holds a real niche in ALD tools inside Korean fabs, but thinner margins and a shrinking backlog show it competing on the terms of much larger rivals.
Jusung Engineering is a South Korean company that makes equipment used inside semiconductor factories to build computer chips. It is hard to copy because chip makers like Samsung and SK Hynix stick with equipment once they approve it, and Jusung has been doing this for 33 years so they know the business well. However, the company cannot compete on price or innovation the way bigger companies like ASM International, Lam Research, and Tokyo Electron can: those companies make three to five times more profit on each sale, so they can spend more on research and just follow Jusung into any new market. The one thing that could change this is if Jusung's newest equipment, called ALG tools, starts getting lots of orders from multiple chip factories over the next year or two, which would prove the company can grow beyond its small customer base.
Why
01
AI pressure: None apparent. AI-driven HBM and memory demand is the tailwind here, not a threat: no AI product replaces ALD deposition tools. Could AI do the core job? Unlikely.
02
Bigger players: ASM International, also Lam Research, Tokyo Electron, Applied Materials. ASM holds over 55% of single-wafer ALD and posted €1B+ quarterly revenue while Jusung's margin sits at 9.3% versus rivals' 28 to 48%. Could a giant copy it? Yes, easily.
03
What protects it. Qualification lock-in inside existing fab lines and its new ALG tool, now shipping to at least one named customer.
What would change this call
Jusung announces second or third named ALG customer order by Q4 2026. Would show the ALG bull case is converting beyond one shipment.
Jusung Q3/Q4 2026 operating margin stays near or below 9-11%. Would confirm weak bargaining power persists despite the memory upcycle.
ASM International, Applied Materials, or Lam Research announce competing sub-400C deposition tools. Would show larger rivals directly targeting Jusung's niche technology edge.
Jusung Q3/Q4 2026 operating margin stays near or below 9-11%. Would confirm weak bargaining power persists despite the memory upcycle.
ASM International, Applied Materials, or Lam Research announce competing sub-400C deposition tools. Would show larger rivals directly targeting Jusung's niche technology edge.
Key numbers
- FY2025 revenue fell 24.1% to 310.6bn won
- Q1 2026 operating loss of about 7bn won on 54.8bn won revenue
- Q2 2026 operating margin 9.3% vs Lam Research's 35%
Named risks
- Q1 2026 revenue collapse of up to 60% YoY into an operating loss could recur if ALG orders fail to materialize.
- Operating margin of 9.3% is a third or less of global and domestic peers, indicating weak pricing power.
- Sector-wide caution on 554 billion dollar Korean capex overhang and Chinese competition could suppress equipment orders.
- ALG commercial success rests on a single unnamed customer with no confirmed follow-on orders as of July 2026.
- Solar and display segment sales collapsed 88.4% YoY in FY2025, showing exposure to volatile non-core segments.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| ASM International | losing to | ASM Q2 2026 revenue tops 1 billion euros with 55%+ single-wafer ALD share vs Jusung's 9.3% margin |
| Lam Research | losing to | Lam Research 35% operating margin in 2026 vs Jusung's 9.3% in Q2 2026 |
| Tokyo Electron | losing to | Tokyo Electron 28.9% operating margin in 2026 vs Jusung's 9.3% |
| Wonik IPS | losing to | Domestic peer Wonik IPS posts 11.3% margin in Q2 2026, above Jusung's 9.3% |
| Hanmi Semiconductor | losing to | Hanmi Semiconductor posts 48.5% operating margin in Q2 2026, far above Jusung's 9.3% |
Questions people ask
- Is Jusung Engineering profitable in 2026?
- Mixed. Jusung posted an operating loss of about 7 billion won in Q1 2026 as revenue fell 54.6-60% YoY, but analysts at Hana Securities and SK Securities forecast full-year FY2026 operating profit of 116-121.3 billion won, roughly 4x FY2025 levels, as of May 2026.
- Who are Jusung Engineering's biggest competitors?
- Jusung competes against ASM International (Q2 2026 revenue over 1 billion euros, 55%+ single-wafer ALD share), Lam Research (35% operating margin), Tokyo Electron (28.9% margin), and domestic rival Wonik IPS (11.3% margin), all reported as of Q2 2026 versus Jusung's 9.3% margin.
- Did Jusung Engineering lay off workers?
- Headcount declined gradually from about 517 employees in 2024 to roughly 469 worldwide as of March 2026, a 7.6% drop since 2023, according to workforce data published June 29, 2026. This tracks the company's 2025 revenue slump rather than a sudden layoff event.
- What is Jusung Engineering's ALG technology and does it have real orders?
- Atomic Layer Growth (ALG) is Jusung's claimed world-first commercial deposition tool enabling sub-400C transistor formation without single-crystal wafers, shipped to one unnamed global semiconductor customer in May 2026. As of July 2026 no second or third named customer order has been publicly confirmed.
- Could AI replace Jusung Engineering's business?
- No, AI cannot replace physical fab equipment manufacturing, which is capital-intensive hardware tied to chip fabrication. Instead, AI-driven demand is Jusung's growth tailwind: Samsung reported a record 62 billion dollar operating profit on July 30, 2026, driven by AI server and HBM memory demand that fuels equipment orders.
- Is Jusung Engineering a safe stock to bet on in 2026?
- It is volatile. The stock quadrupled from January to early May 2026 on ALD/ALG order optimism, then surged over 20% more on the ALG shipment news, but Q1 2026 revenue fell up to 60% YoY into an operating loss, and its 9.3% Q2 2026 margin trails every cited domestic and global peer.
Timeline
- 2026-07-14Chairman Hwang Chul-joo frames ALG as 30-year R&D bet, plans North America export expansion
- 2026-07-13Q2 2026 operating margin reported at 9.3%, trailing Hanmi, Wonik IPS, Lam Research, Tokyo Electron
- 2026-05-18Jusung ships claimed world-first commercial ALG equipment to unnamed global customer, stock jumps 20%
- 2026-05-04Analysts forecast FY2026 operating profit rebound to 116-121.3 billion won after Q1 loss
- 2026-02-10FY2025 results: revenue down 24.1% to 310.6bn won, operating profit down 67.8% to 31.2bn won
- 2025-08-07WSJ lists Jusung headcount at 521 employees and institutional holder stakes
- 1999-12-24Jusung Engineering IPOs on KOSDAQ under ticker 036930
- 1993-04-13Jusung Engineering founded in South Korea
Revision history
30 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Jusung Engineering's Sales Fell 24% Last Year to 310.6 Billion Won (2026-02-10)
- Jusung Engineering shares surge as Korea bets on ALD orders and solar expansion (2026-05-04)
- Samsung, SK Hynix Profit Boom Bypasses Suppliers (2026-07-13)
- ASM Q2 2026 slides: record revenue tops €1B, 2027 outlook raised (2026-07-29)
- 036930) Financials & Income Statement
- Jusung Engineering Number of Employees 2026 (2026-06-29)
- Jusung Engineering Co. Ltd. Company Profile & Executives - WSJ (2025-08-07)
- Jusung Engineering Ships World's First ALG Semiconductor Equipment (2026-05-18)
- Jusung Engineering Surges 20% on World-First ALG Equipment Supply (2026-05-18)
- Chipmaking Success Lies in "World-First" Tech, Says Jusung Chairman (2026-07-14)
- Products, Competitors, Financials, Employees, Headquarters Locations (2026-06-10)
- Samsung reports record profit as South Korean chip giants benefit from global AI boom (2026-07-30)