South Korean equipment manufacturer Avaco (KOSDAQ: 083930) is in the final stages of developing its Through-Glass Via (TGV) system for large-area glass substrates, with completion expected within the first half of this year, according to local media reports on May 7.

A company official confirmed that the 500x500mm TGV equipment has entered its final development phase. The high-precision tool is designed to drill microscopic electrode channels in glass substrates, enabling electrical connections with excellent thermal stability and ultra-thin form factors—features crucial for next-generation semiconductor processes including high-bandwidth memory (HBM) and AI server chips.

Avaco is focusing on TGV and plasma line systems to expand beyond its core display equipment business into the semiconductor market. The company expects these technologies to help it gain traction in the growing HBM and glass substrate sectors. Following the completion of its metal sputtering system, Avaco is building a foundation for direct entry into the HBM supply chain.

Separately, on April 22, Korean media reported that Avaco had begun manufacturing OLED in-line vacuum transfer systems for Chinese display maker BOE under a supply agreement signed last year. The first batch is scheduled for delivery in April, with the remaining units expected by November. OLED equipment is projected to account for the majority of Avaco's revenue this year. The deal, which runs through January 2026, also includes OLED vacuum deposition systems. Financial details were not disclosed due to a non-disclosure agreement.

BOE plans to deploy the equipment on its 8.6-generation OLED production line, which offers approximately 2.25 times the efficiency of existing 6G lines. The new line is part of BOE's 63 billion RMB investment to scale OLED production.

In parallel, Avaco is accelerating its TGV development as demand for glass substrates in semiconductors surges alongside the growth of AI applications. The company reports strong interest from potential customers and is conducting ongoing sample tests.

Despite these growth initiatives, Avaco posted a first-quarter operating loss of KRW 3 billion, reversing into the red. Revenue fell 45.3% year-on-year to KRW 102.7 billion, and net loss reached KRW 700 million.

Amid the pandemic, Avaco began diversifying its portfolio, launching a secondary battery equipment division in 2020. The division has since become one of its core business drivers alongside OLED and semiconductor-related equipment.