Dongbu HiTek, the semiconductor material company, has seen its stock price surge following the recent passing of its founder, Lee Bu-seob. On the morning of the announcement, the stock rose sharply, indicating investor sentiment around the company’s future prospects and its pivotal role within the domestic semiconductor industry.
On December 25, Lee passed away at the age of 88 due to illness, as confirmed by company officials. Born in 1937, Lee graduated from Kyunggi High School and later from Seoul National University, where he studied chemical engineering. His entrepreneurial spirit led to the establishment of Dongbu HiTek, originally named Dongjin Chemical Industry, back in 1966, from his home’s coal storage. Over the years, he built the company from the ground up, achieving significant milestones, including becoming the leading supplier of blowing agents and photoresist materials used for semiconductors.
Lee was particularly noted for his resilience; after facing financial difficulties during the 1980s, he managed to convince global partners to reinstate their trust, facilitating the company's recovery. He not only pioneered developments in the semiconductor materials sector, but also made strides during Japan’s semiconductor material export restrictions, proving pivotal in achieving self-reliance for South Korea's semiconductor industry.
His contributions were instrumental as Dongbu HiTek became recognized for its domestic production of photoresist, which is necessary for the semiconductor manufacturing process. Lee oversaw the development of photoresist technology, achieving a notable milestone when his company became the world’s fourth to successfully produce the material.
Under his leadership, Dongbu HiTek managed to supply Samsung Electronics with photoresist as early as 1994. This technological achievement not only marked the company’s entry to the global stage but also underscored Lee’s commitment to elevatory the nation's technological capabilities through homegrown innovation.
Following his passing, Dongbu HiTek’s stock, which had already been performing well, surged to 41,950 won (approximately $37 USD), marking a 14.72% increase within the trading session, reflecting the market's focus on the leadership and legacy attributed to Lee. Analysts believe the increase aligns with heightened expectations surrounding the company’s strategic direction, especially as it gears up for future advancements such as the localization of ABF film—a snoozed film essence for semiconductor packaging. Historically dominated by Japanese manufacturers, the successful domestic production of this material is now seen as the next frontier for the firm.
With Lee’s son, Lee Joon-kyu, now taking the helm alongside his brother Joon-hyuk, the leadership transition brings with it hopes of sustaining the innovation momentum established by their father. Dongbu HiTek's commitment to R&D remains unwavering as they continue to aim for market leadership within semiconductor packaging through initiatives like the development of DJBF, a localized version of ABF film.
Dongbu HiTek's efforts are anticipated to contribute to technological independence for South Korea, significantly diminishing reliance on foreign suppliers. Analysts note the strategic pivot toward localizing materials such as DJBF and the management's emphasis on R&D are generating optimism among investors, reflected similarly via stock performance, now pinning for global competitiveness.
To capture the sentiments surrounding both the legacy of Lee Bu-seob and the aspirations for the firm going forward, Dongbu HiTek continues to position itself at the forefront of innovation as it navigates through leadership shifts and strives for national self-sufficiency within semiconductor materials.