DB HiTek posts W90b operating profit in Q3 on power semiconductor boom

DB HiTek said Thursday it has sustained strong earnings momentum, driven by robust demand centered on power semiconductors. Factory utilization has effectively reached 100 percent on the back of rising foundry demand.

In preliminary earnings disclosed Thursday, DB HiTek reported third-quarter sales of 403.4 billion won ($302 million) and operating profit of 90 billion won, up 14 percent and 7 percent, respectively, from the same period last year. The operating margin stood at 22 percent.

Cumulative results through the third quarter also showed improved profitability compared with a year earlier. Sales for the nine-month period reached 1.18 trillion won and operating profit came to 262.2 billion won, up 19 percent and 24 percent, respectively, year on year.

The company attributed the profitability gains to strong demand for its core power semiconductor products. Factory utilization held effectively at 100 percent, and selling prices rose as the share of high-value, high-voltage power semiconductors — known as HV BCD — expanded in the product mix.

Demand is also growing in high-value application areas including automotive and industrial semiconductors, AI data centers and robotics.

DB HiTek is strengthening its competitive position by focusing on high-value products such as high-voltage power semiconductors, third-generation super-junction MOSFETs and specialty image sensors. The company is also working to upgrade its 8-inch foundry business by expanding into high-growth sectors such as AI data centers and electric vehicles.

With utilization already at 100 percent, the need to expand production capacity is growing. The company is proceeding with phased investment in production lines to respond flexibly to rising foundry demand.

DB HiTek recently completed a clean room at its Sangwoo Campus in Eumseong-gun, North Chungcheong Province, securing additional monthly production capacity of 40,000 wafers. The company plans to further expand its next-generation power semiconductor production lines to a capacity of more than 100,000 wafers per month.

"We plan to expand production capacity in stages, taking into comprehensive account factors such as customer acquisition, technology development trends and investment capacity, in order to build an even stronger foundation for medium- to long-term growth," a DB HiTek official said.