This Company Excels from Defense Materials to HBM Inspection Equipment [Weekend Money]

Green Optics Achieves Localization of Ultra-High-Purity ZnS After 10 Years of R&D
Securing Mid- to Long-Term Growth Drivers Through Expanding MS-ZnS Demand and HBM Inspection Equipment

Green Optics is expanding its growth opportunities in the defense and semiconductor sectors, leveraging its advanced precision optical systems and optical material technologies. After successfully localizing ultra-high-purity zinc sulfide (ZnS), a highly sophisticated optical material, the company is now working to enter the global defense supply chain and expand its presence in the semiconductor inspection equipment market, thereby establishing a foundation for mid- to long-term growth.

Kwon Myungjun, a researcher at Yuanta Securities, explained, "Green Optics is a company in the optical lens and optical elements manufacturing industry, specializing in the development and manufacturing of ultra-precision optical systems." He added, "Its main products include ultra-precision optical systems and optical materials (ZnS), and the company has established in-house capabilities for the entire process from optical design to inspection."

The downstream industries for Green Optics include defense, display, semiconductor, and aerospace. In particular, the company is enhancing its market competitiveness in the defense sector, based on its proprietary material technology.

Kwon noted, "Over the past 10 years, Green Optics has invested 10 billion won in research and facilities, and conducted more than 170 process tests to localize ultra-high-purity ZnS. Only a handful of companies worldwide (10 companies) have succeeded in commercializing ZnS, as it is a material with extremely high technological barriers to entry and is classified as a strategic commodity."

ZnS is a material with excellent transmittance in the infrared region and is used in a variety of defense products, including guided weapons. Green Optics is exporting this material to various countries, including Israel, the United States, Japan, and Egypt.

The expansion of defense orders is also a factor boosting expectations for performance growth. Kwon stated, "The value of defense orders has increased from 57.28 billion won in the third quarter of 2025 to 61.87 billion won in the fourth quarter, and 64.18 billion won in the first quarter of this year. The increasing demand for processed MS-ZnS is expected to drive the company's performance growth."

Green Optics is also working to localize germanium as the next-generation defense material. Germanium is mainly used in infrared optics for the semiconductor and defense sectors, and due to recent export restrictions by China, the need to secure a stable supply chain has grown.

Kwon explained, "The company is working on localizing germanium, and in January, it completed equipment manufacturing with plans to begin sales within the year."

The company has also laid the groundwork for entering the global defense market. In September last year, Green Optics was selected for GVC30, securing a foothold to enter the supply chains of global defense companies.

Kwon stated, "There are two effects of being selected for GVC30. First, through this selection, the company is preparing to enter the global defense supply chain, as five times the delivery value is recognized in offset trade." He continued, "Second, with support for export product development for global defense companies, the company will receive up to 4.4 billion won over two years (400 million won for domestic and international demonstration testing and 4 billion won for export product development), enabling it to secure mass production technology for MS-ZnS dome materials." He added, "Production capacity is expected to improve through capital expenditures (CAPEX) funded by this support."

Green Optics is also securing new growth drivers in the semiconductor sector. The company's optical modules are applied to inspection equipment that detects defects in high bandwidth memory (HBM), and additional component development is also underway.

Kwon explained, "In addition, the company is either collaborating or independently developing equipment for inspecting wafer back side chucks, wafer photoresist (PR) coating, wafer inspection, and thin film and coating process inspection." He added, "The sale of self-developed inspection equipment is expected to positively impact the company's valuation."

This content was produced with the assistance of AI translation services.