This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:06 p.m. on May 12, 2026.
With expectations of benefiting from the "semiconductor supercycle," Daishin Private Equity (Daishin PE), a private equity fund (PEF) manager that bet on exchangeable bonds (EB) of a semiconductor inspection equipment maker, has run into difficulties recovering its investment. Even though it set the exchange price at about 70,000 won per share with a 20% premium added, Techwing's stock is hovering around the 50,000-won level.
According to the investment banking (IB) industry on the 12th, the valuation of Techwing EBs held by Daishin PE, based on the closing price that day (53,500 won), is about 30 billion won, putting it at a 24.7% mark-to-market loss compared with principal. Because they are EBs, a principal repayment demand is possible, but on stock price alone it would be a loss. It has been half a year since Daishin PE invested 40 billion won through "Daishin Growth Cap 2024 Private Investment."
In Oct. last year, Daishin PE participated as the acquirer of Techwing's 10th private EB issuance worth 93.3 billion won and bet 40 billion won. The remaining 53.3 billion won of EBs were purchased by Daishin Securities using proprietary investment (PI) and other funds. Under Daishin PE's lead, Daishin Financial Group took on the entire Techwing EB tranche.
Analysts say expectations for the semiconductor supercycle backfired. Techwing is a specialist manufacturer and seller of back-end semiconductor inspection equipment, and Daishin PE invested on the view that Techwing's earnings rebound and a stock price rise would accompany the growth of Chonbang industries such as data centers, artificial intelligence (AI), and high-performance computing (HPC).
In particular, at the time of investment Daishin PE secured allocation by setting the exchange price at 71,060 won, a 20% premium to Techwing's reference price. This is interpreted to mean investor expectations for the stock price were that high.
Daishin PE's mark-to-market loss on the Techwing EB investment exceeded 47% early this year. Contrary to expectations of a semiconductor boom, results have yet to meet hopes, with both revenue and operating profit declining last year. Techwing's operating profit last year was 15.8 billion won, down more than 32% from 23.4 billion won the previous year.
The EB issuance structure being designed strictly in favor of the issuer, Techwing, also adds to Daishin PE's burden. First, both the coupon rate and the yield to maturity were set at 0%. From Techwing's perspective, this means no separate interest will be paid until maturity. The refixing clause that would allow adjustment of the exchange price if the stock price falls was also omitted.
Although an early redemption right (put option) is included, the structure returns the same 40 billion won without any interest add-on. The exercise window starts in Apr. 2028, 30 months after EB issuance, excluding even the minimum interest income that could be earned by operating at market rates over the same period (the current base rate is about 2.5%–3%).
The exchange request period began on Jan. 20 this year, but Daishin PE plans not to rush to recover the investment. That is because signs of a rebound in Techwing's results are emerging, prompting views of a potential stock rise. Techwing also recently signed a 22.8 billion won supply contract for semiconductor inspection equipment with Micron.
An IB industry source said, "Daishin PE, based on the industry narrative of 'expanding semiconductor demand,' gave up interest revenue and targeted only capital gains from the Techwing investment," adding, "Because it was invested in Oct. last year and there is no immediate pressure to exit, the firm is expected to take time and watch the stock's trajectory."