Avaco Co., Ltd. (KOSDAQ: 083930), a South Korean equipment manufacturer known for its OLED and secondary battery solutions, is aggressively expanding into the high-growth glass substrate market, aiming to lead with its proprietary Through Glass Via (TGV) equipment.

In a recent interview with Seoul Economic Daily, CEO Kim Gwang-hyun emphasized that the company expects its TGV equipment to become a new performance driver. “We believe we’re well-positioned to lead this market by leveraging our long-standing expertise in display equipment, especially in thin film coating and glass heat treatment,” Kim said. He added that discussions are already underway with several companies and the company anticipates its first shipments later this year.

TGV equipment plays a key role in next-generation semiconductor packaging by creating microscopic electrode channels through glass substrates. These glass-based substrates can significantly reduce package thickness and improve thermal conductivity—features critical for AI chips. Mass production of glass substrates is expected to ramp up starting in 2026.

Avaco, founded in 2000 and based in Daegu, is applying its display equipment technology to this emerging sector. CEO Kim stated that Avaco is committed to becoming a total solution provider for cutting-edge manufacturing industries.

The company also reported record-breaking financial results for 2024, with revenue reaching KRW 305.5 billion and operating profit at KRW 21.1 billion, representing year-on-year growth of 64% and 379%, respectively. Kim attributed the growth to strong battery equipment sales, particularly to Ultium Cells—a GM and LG Energy Solution joint venture in North America.

Looking ahead, Avaco is forecasting KRW 380 billion in revenue for 2025 and has set a new order target of KRW 400 billion (approximately 2.05 billion or $281 million). The company currently holds an order backlog of KRW 450 billion (approximately 2.31 billion or $361 million) as of the end of 2024. About 90% of its total sales are export-based, with major clients including LG Energy Solution, LG Display, and China’s BOE.

Avaco has also made headlines with its joint venture with Germany’s SCHMID Group (NASDAQ: SHMD). Announced in 2018, the joint venture Schmid-Abaco Korea successfully developed advanced dry processing equipment for printed circuit boards (PCBs) in 2019. On January 17, 2025, the company announced that it had adapted this technology for use in glass substrate packaging, enabling highly precise etching and deposition for next-generation electronics.

In February, Avaco revealed it was in talks with a major global electronics brand, referred to as “Company A,” for a potential equipment supply deal. Its plasma-based EDR system is said to offer seamless etching and electrode deposition, compatible with high-density PCBs and advanced IC substrates. A company representative confirmed that early-stage mass production trials have been completed.

Uniquely, Avaco awards company shares to managers and higher-level employees, a rare practice in the Korean equipment industry, to promote long-term talent development. “Our core business is selling technology,” Kim said. “We are working to position ourselves as a comprehensive equipment provider for high-tech manufacturing.”