LS Electric Targets Semiconductor Automation Market Dominated by Japanese Rivals

What happened

According to industry sources on Oct. 21, LS Electric is seeking to expand its semiconductor factory automation business in overseas markets, including the United States and Southeast Asia. For several years, the company has attempted to enter the market for control systems and drive components used in overhead hoist transport (OHT) systems, which handle materials in semiconductor factories; despite offering motion controllers, servo drives and motors, its domestic supply track record remains limited. Japanese companies have long dominated the OHT equipment and control component markets: Daifuku and Murata Machinery established early positions in complete OHT systems, and suppliers such as Mitsubishi Electric have provided control systems and drive components using proprietary communication protocols, creating a high barrier because replacing entire existing systems is difficult. In South Korea, Samsung Electronics subsidiary SEMES developed domestically produced OHT equipment in the 2010s, followed by companies including SFA and MX Robotics, formerly SMCore. An industry official said semiconductor manufacturers often designate suppliers of key OHT components when placing equipment orders, with Mitsubishi Electric products primarily used in South Korea and Siemens products also used in Europe. According to market research firm QY Research, the global semiconductor automated material handling system (AMHS) market is projected to grow from $3.709 billion in 2025 to $5.988 billion in 2032, with OHT's share of the overall market expected to increase from 46.86% to 48.91% over the same period. LS Electric said it is pursuing opportunities to supply complete packages of reliable automation products when domestic and overseas semiconductor companies build new factories in the United States and Southeast Asia, and is first building its track record and demonstrating the reliability of automation control technologies developed for automotive and battery production lines.

Impact and signal

Affected components and suppliers

Source and time

Source: The Elec · 10/21/2026 · View original source