Aroot Subsidiary Raises Capital Through Third-Party Allotment to Executives and Employees, Boosting Semiconductor Equipment Synergies

Aroot will conduct a third-party allotment of new shares targeting key executives at its semiconductor equipment subsidiary, NSRC. The strategy is to accelerate growth in the semiconductor equipment business by combining the parent company's financial strength with the subsidiary's technical and sales capabilities.

Aroot announced in a filing on Oct. 22 that it had decided to carry out a third-party allotment of new shares worth a total of KRW 1.7 billion. The new shares will be issued at KRW 4,866 each, with 349,362 common shares to be issued. The new shares will be subject to a one-year lock-up from the date they are delivered.

Participants in the capital increase include NSRC's current CEO, a vice president, the head of sales, and other key executives. The company expects that the executives who are closest to leading its semiconductor equipment business will strengthen accountable management by participating directly in the capital increase and expand business synergies between the two companies.

NSRC is seeking to secure global customers while expanding its refurbishment business, focusing on semiconductor lithography equipment. Recently, following orders from existing customers, it secured an order for lithography equipment from Taiwanese power semiconductor manufacturer P, expanding its business into the AI data center value chain.

Power semiconductors are key components used in power supply, conversion, and distribution at AI data centers. NSRC expects orders for related equipment to have risen rapidly since this year amid growing demand for power semiconductors, with supply expansion expected to continue next year.

In particular, the company is strengthening its business foundation by pursuing orders from global customers while also securing specialized personnel. With this capital increase, Aroot plans to combine NSRC's technological capabilities with the financial strength of listed company Aroot to enhance its competitiveness in the global semiconductor lithography equipment market.

An Aroot official said, "NSRC is strengthening the foundation for growth in its semiconductor lithography equipment business by securing global customers and expanding its pool of specialized personnel. The participation of NSRC executives in this capital increase, who have the clearest understanding of the order pipeline for semiconductor refurbishment and lithography equipment and the business's earnings turnaround, demonstrates their confidence in future growth."

The official added, "With this capital increase as a starting point, we will go beyond delivering short-term results and proactively carry out the medium- and long-term strategies of the parent company and subsidiary as a whole. Major overseas customers in North America, Taiwan, Japan, and China rigorously assess not only technological capabilities but also long-term management stability when selecting suppliers. We will strengthen synergies across the group and grow as a global vendor."

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