Focus

New listed company:Hon.Precision, Inc.(7769)

GuanIou Li
Senior Associate at TWSE

Company Profile

Hon.Precision, Inc., established in 2015 and headquartered in Taichung City, Taiwan, is a world-renowned professional manufacturer of IC test handlers, Active Thermal Control (ATC), and automation solutions. Its main products and their applications are detailed in Figure 1 and Figure 2.

Figure 1: IC Process

Figure 2: Various Product Lines

Since its inception, Hon.Precision, Inc. has upheld the core values of "Customer First, Quality Foremost." With independent research and development as its technological cornerstone, it has continuously invested in the software and hardware R&D of advanced test equipment, visual inspection, and ATC thermal control systems. Leveraging steady technological accumulation and a global footprint, it has gradually established a clear and strong competitive advantage in the field of semiconductor backend testing. Its clientele covers major global IC design houses, OSATs, and large IDMs.

To strengthen its global service capabilities, Hon.Precision, Inc. has established subsidiary offices in China, the United States, and Germany. Complemented by a distributor network, it has formed a comprehensive global service network. Hon.Precision, Inc. provides one-stop, comprehensive services ranging from new product introduction (NPI), equipment development, assembly, machine testing and verification, and quality management, to after-sales service. This assists clients in rapidly introducing products to mass production and maintaining process stability.

Business Model

The business model of Hon.Precision, Inc. revolves around four main pillars: "Global Sales, Independent R&D, Manufacturing, and After-Sales Service." Please refer to Figure 3 and its description:

Figure 3: Business Model

Global Sales: Deep collaboration with customers from the new product introduction (NPI) stage, followed by large-scale equipment deployment at various OSAT sites during the mass production phase. In terms of global business, key strategic regions such as China, the United States, and Germany are operated directly through overseas subsidiaries. Other semiconductor cluster locations are supported by a global distributor network, allowing the sales footprint to cover major semiconductor production bases and strengthening international market share.

Independent R&D: The software and hardware of Hon.Precision, Inc. are developed in-house, rather than relying on acquisitions or external technology for core competencies. As chip design moves towards high density and multi-layer stacking, thermal control technology has become critical for high-power, large-package testing. The ATC technology of Hon.Precision, Inc. continuously iterates and grows in tandem with customer testing requirements.

Manufacturing Capabilities: To meet customers' large-volume and diverse order demands, Hon.Precision, Inc. possesses a comprehensive supply chain management and quality assurance (QA) process. Assembly and wiring are handled by partner contractors, while final testing and inspection are controlled in-house by the company. The company is also continuously planning for capacity expansion to address the future high demand for advanced packaging equipment.

After-Sales Service: Backed by a large installed base of machines and global service locations, the company provides rapid technical support and maintenance services to ensure the stability of customers' yield and capacity during mass production. After-sales service is also a core competency for Hon.Precision, Inc. in maintaining long-term customer partnerships. The company continuously invests resources to strengthen customer support.

Industry Position and Competitive Advantages

With the rapid growth of the global HPC/AI market and the significant expansion in demand for advanced packaging, large-package testing, ultra-high power dissipation, and high-parallelism test platforms are gradually becoming the main development trends for backend test equipment. Hon.Precision, Inc., leveraging its years of accumulated technology, has established a key position in the advanced packaging testing process.

Hon.Precision, Inc. engages in joint development and collaboration with end-customers starting from the new product introduction (NPI) stage. This ensures that test specifications, thermal control requirements, and packaging processes are perfectly aligned, guaranteeing the speed and stability of mass production order introduction. Concurrently, its long-term partnerships with OSATs and the large accumulated installed base create a market-leading advantage, allowing it to maintain high competitiveness within the primary semiconductor ecosystem.

Growth Drivers and Technology Layout

Facing the rapid market entry of large-package, high-power chips and the accelerated evolution of backend testing technology, Hon.Precision, Inc. is focusing on the five major technological directions shown in Figure 4: large-package solutions, high-power ATC thermal technology, micro-channel cold plate testing, SLT (System-Level Test) solutions, and CPO (Co-Packaged Optics) related test solutions. In these areas, the company is continuously expanding its R&D investment and maintaining close collaboration with global customers to capture the growth opportunities brought by industrial upgrading and technological transitions.

Furthermore, Hon.Precision, Inc. has accumulated over 600 patents in locations including Taiwan, the United States, China, South Korea, and Japan. These patents cover core technology fields such as thermal control, high-speed parallel testing, and visual AOI (Automated Optical Inspection). This forms a deep technological moat and lays a solid foundation for future product development.

Figure 4:Future Growth Drivers
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