This article was first published on Signal, the Seoul Economic Daily's capital markets newsletter, at 3:29 p.m. on April 16, 2026.
"I believe the artificial intelligence infrastructure industry will generate enormous profits for at least the next two to three years. We want to seize this opportunity through aggressive business expansion via mergers and acquisitions," said Park Sung-jae, Vice Chairman and CEO of Sungho Electronics.
In an interview with the Seoul Economic Daily on Wednesday, Park said his goal is to "build a company that generates 4 trillion won in revenue and 1 trillion won in operating profit within five years," adding that "we will expand Sungho Electronics' role within the global AI value chain."
Founded in 1973, Sungho Electronics embarked on a path of aggressive expansion following Park's appointment in 2021. The company, which had focused on manufacturing film capacitors used in LCD TVs and other products, has recently expanded into the AI industry by acquiring a series of semiconductor equipment companies.
A prime example is the acquisition of ADS Tech, an optical transceiver equipment manufacturer, completed in February this year. ADS Tech has been supplying products to Mellanox, an Nvidia subsidiary, since 2021. Recently, it was selected as the sole supplier of co-packaged optics (CPO) equipment, a core technology for Nvidia's next-generation AI data centers. ADS Tech and Germany's Ficontec are the only companies in the world capable of manufacturing this equipment.
As the market recognized Sungho Electronics' role in the AI value chain, its market capitalization surged from around 100 billion won at the end of last year to approximately 3.7 trillion won recently. Securities analysts expect Sungho Electronics to achieve operating profit in the 80 billion won range this year.
"We acquired ADS Tech because we believed that combining the engineer-founders who have deep technical understanding with Sungho Electronics' strengths in business operations and development would create a win-win situation," Park explained. "The founders remain with the company to focus on their core development work, while Sungho Electronics handles support and expansion to grow the business."
Sungho Electronics strengthened its control over ADS Tech ahead of the full commercialization of CPO technology. The company currently controls ADS Tech through its subsidiary Amazing Holdings, and recently used 65.8 billion won worth of bonds with warrants (BW) to acquire the 30% stake in Amazing Holdings held by ADS Tech's existing shareholders. This raised Sungho Electronics' stake in Amazing Holdings from 70% to 100%. The existing ADS Tech shareholders acquired Sungho Electronics' BW in return, strengthening the partnership.
Beyond ADS Tech, Sungho Electronics has completed six additional M&A deals in the past year to bolster its AI business. JKI, a semiconductor inspection equipment manufacturer, and DIES, a semiconductor backend cooling device (chiller) manufacturer, both acquired last year, are part of the AI industry value chain. Park ruled out the possibility of a rights offering, which some have raised. Sungho Electronics' debt ratio has been on a continuous decline.
"We have no plans to raise capital from the market through rights offerings or similar means at least until the end of the third quarter this year," Park said. "We will focus on generating synergies by applying the M&A know-how Sungho Electronics has accumulated to technology companies."
