SAWNICS aims for IPO in Nov., eyes growth in RF filter foundry sector

SAWNICS CEO Yang Hyung-kook [Photo by Oh Dae-seok]

SAWNICS, a South Korean RF filter foundry company targeting an initial public offering (IPO) in November, is also setting its sights on becoming a leading player in the specialized foundry sector in the country, with aspirations akin to industry giants such as TSMC.

“The radio frequency (RF) filter market is poised for structural growth in line with the advancement of communication technologies in addition to the expansion of autonomous driving and space industries. Building on these trends, we aim to sustain the company’s growth,” SAWNICS CEO Yang Hyung-kook recently told Maeil Business Newspaper, outlining the company’s vision.

Founded in 2000, SAWNICS specializes in RF filters, which function like water purifiers for radio frequencies to allow certain frequencies to pass through. “As mobile communication technologies, such as 5G and future 6G, continue to advance, the demand for RF filters to transmit large data volumes rapidly will increase. RF filters are also essential for innovative technologies such as autonomous driving and space exploration,” Yang explained. “As a result, we anticipate the entire RF filter market to more than double, growing from $6.3 billion in 2022 to $11 billion in 2026.”

SAWNICS stands out for its advanced RF filter technology and manufacturing capabilities. Notably, the RF filter production process is transitioning from standard 4-inch wafers to larger and more cost-competitive 6-inch wafers. SAWNICS has a dedicated 4-inch and 6-inch production line in Pyeongtaek.

The company alseo plans to use the proceeds from the upcoming IPO to further enhance its technology and expand its production capabilities.

“We plan to increase our 6-inch production capacity three to four times the current level by 2026.” With the growing number of customers we have, we are aiming to grow our revenue four to five times over the next five years,” Yang said.

From October 17 to 23, SAWNICS will engage institutional investors in a book building process. The target IPO price range is set between 5,000 to 7,000 won ($5.18) per share, with a total expected IPO fund of 18 billion to 25.2 billion won.