Ecopro HN is pursuing a contract worth about 200 billion won ($139 million) to supply Regenerative Catalytic Systems (RCS) to US memory chipmaker Micron Technology's new fabs in Idaho (ID1 and ID2), industry sources said. The move would extend the company's existing chemical filter supply relationship with Micron into a new product category and is expected to accelerate its push to win overseas memory chip customers.
According to investment banking industry sources Friday, Ecopro HN is seeking to supply both RCS systems and chemical filters to Micron's new Idaho fab projects. The company is targeting contracts exceeding 100 billion won for each of the ID1 and ID2 sites, putting the total potential deal in the 200 billion to 250 billion won range.
Industry sources say the negotiations are in their final stages. If concluded, the contract would be a single mega-order surpassing Ecopro HN's full-year consolidated sales of 141.1 billion won last year.
Ecopro HN was spun off from Ecopro's environmental business division in 2021 and operates as an eco-friendly solutions company. Its core businesses include cleanroom chemical filters for semiconductor and display factories, greenhouse gas reduction solutions, fine dust reduction solutions and water treatment solutions. As of the first quarter of this year, chemical filters accounted for 34.0 percent of sales, fine dust reduction solutions 30.6 percent, greenhouse gas reduction solutions 20.0 percent, and water treatment solutions 14.7 percent.
Ecopro HN has previously supplied chemical filters to Micron, and the industry views the Idaho fab projects as an opportunity to expand that relationship to include RCS systems. Micron is building new fabs in Idaho and New York with US government support to expand production capacity in response to growing demand for AI memory chips.
RCS is a greenhouse gas treatment system that uses a regenerative heat-recovery structure to lower processing temperatures to below 750 degrees Celsius, compared with the 1,300 to 1,400 degrees required by conventional direct combustion methods. The system recirculates heat within the process by recovering thermal energy from exhaust gases to preheat incoming gases, reducing the energy burden of heating. It can recover about 95 percent of heat, cutting energy costs by roughly 85 percent compared with direct combustion.
Ecopro HN was the first company in the world to commercialize large-capacity RCS technology and has been the exclusive supplier of RCS systems to Samsung Electronics' new fabs from the design stage. The industry believes Ecopro HN is now leveraging that track record and technological expertise to pursue the Micron Idaho contract.
The company is also adding to its domestic order book. Ecopro HN disclosed Monday that it had signed a contract with Samsung E&A worth 32.96 billion won to supply RCS systems for Samsung Electronics' Pyeongtaek 5 factory. The amount equals 23.4 percent of last year's consolidated sales. Industry sources say further RCS supply through Samsung E&A is possible as Samsung Electronics proceeds with additional production lines at Pyeongtaek 5, as well as planned investment in Pyeongtaek 6 and a new fab in Giheung.
Securities analysts also see the global semiconductor capital expenditure cycle as a key growth driver for Ecopro HN. "Both cleanroom chemical filters and greenhouse gas reduction solutions will grow in tandem with the semiconductor investment cycle," said An Ju-won, an analyst at DS Investment Securities. "In particular, the higher-margin greenhouse gas reduction solutions segment will see standout top-line growth, and the company will also secure new overseas customers."
The company's recent hiring activity is adding to expectations of overseas project expansion. Ecopro HN is recruiting experienced workers in plant engineering, chemical filter maintenance and equipment maintenance through Aug. 21, and the job posting for the plant engineering role explicitly states that the position involves planned business travel to Idaho. Candidates with experience at semiconductor sites and overseas construction projects are listed as preferred qualifications.
An Ecopro HN investor relations official said the company could not provide details on contract progress with individual customers subject to regulatory disclosure requirements, but confirmed that "we have secured Company M as a customer for our existing chemical filters." The official added that the company "is pursuing customer diversification for its greenhouse gas reduction solutions business, including RCS, and expects to land large orders this year as semiconductor industry conditions improve."
hajun825@heraldcorp.com
