1) Industry definition
The semiconductor/display inspection/measurement equipment (Metrology & Inspection Equipment) industry
does not produce final products, but is a key infrastructure industry that determines process yield, defect rate, and line stability .
The ESG of this industry is not an “industry with a large environmental footprint” like general manufacturing.
- Quality/reliability failure → customer process interruption → large-scale loss/contractual risk
- Supply chain unification and export control → It is evaluated as a financial risk management system
directly linked to sales volatility.
For U.S. investors, ESG in this industry
boils down to the question, “How much damage could an accident, failure, or outage at this equipment company cause to our customer’s fab?”
2) Purpose of provision
This report is an industry-level global ESG persuasion material that aims to
① present the ESG evaluation practices of the U.S. semiconductor equipment industry as a baseline, ② structure the current position and disclosure gap
of the Korean inspection and measurement equipment industry, and ③ encourage Korean listed companies to prepare ESG at the “U.S. level . ”
1) Environment (E) — “Process-based environmental risks”
This industry focuses on high-precision equipment manufacturing and testing processes rather than large-scale manufacturing facilities.
- High energy use
- Special gases and chemicals
- Cleanroom-based processes
are repeated.
In this area, US investors prioritize "process stability + regulatory compliance" over carbon itself.
In other words, Scopes 1, 2, and 3 are prerequisites , not the core of the assessment. (ISSB practice)
2) Society (S) — “High-skilled workforce and customer dependency risk”
- Departure of key engineers → decline in technical skills
- Focus on customer (Fab) → Single customer risk
- Equipment defect → Customer production disruption → Collapse of trust
Therefore, human capital, quality, and customer trust are the central axes of ESG.
3) Governance Structure (G) — “Quality, Regulation, and IP Control Structure”
- Decision-making and reporting system in case of quality incidents
- Export Controls (EAR) and Sanctions Response
- Technology, Data, and IP Protection
These three elements are the real framework of ESG.
American investors view this industry through a three-tier framework .
1) ESG = “Quality and Process Risk Management System”
In the US semiconductor equipment industry,
- Equipment defect
- Repeat defects
- Customer Fab outages
are classified as ESG issues .
That is, ESG is
It operates on the financial question
, “How much damage could a quality problem with this company’s equipment cause to our customers?”
(Investor practices in the U.S. semiconductor equipment industry are practically referenced by SASB industry-specific standards.)
2) Supply chain and export control are key axes of ESG.
- U.S. Export Controls (EAR)
- Dependency on specific countries/customers
- Single supply structure for core components
These factors are assessed as geopolitical and regulatory risks
, and US investors view them as governance (G) and risk management items .
3) KPI-centric, event-centric, and customer impact-centric
The question for the American baseline is simple.
- Has there been an actual quality incident?
- How many were there?
- What impact has this had on your customer lines?
- Is relapse prevention managed numerically?
division | US Baseline (Investor Practice) | A common condition in Korean industry | Disclosure Gap |
| Quality and Defect Management | Equipment defects, recalls, and customer Fab operation impacts, KPI-centered management to prevent recurrence ( SASB ) | Focus on quality policy and ISO certification | Disclosures linking **incidents, frequency, customer impact, and cost (line interruption/compensation)** to KPIs are weak. |
| Customer Process Impact | Investor Evaluation of the Impact of Equipment Failures on Customer Yields and Line Stability ( SEC ) | Minimize mention of customer impact | Lack of explanation of how equipment defects can lead to customer production disruptions. |
| Customer dependence | Disclosure of Top Customer Sales Share and Concentration, and Single Customer Risk Scenarios ( SEC ) | Description of "Securing Global Customers" | Customer focus doesn't translate into sales and cash flow volatility . |
| Supply chain stability | Whether core components are unified, replaceable, and disruptive scenarios ( White House ) | Focused on introducing partners | Supply chain disruptions do not lead to delivery, sales, or contract risks . |
| Export Controls and Regulations | Analysis of the impact of changes in EAR and public export controls on orders and sales ( BIS ) | Statement of the Principles of Compliance | Lack of explanation of the impact of regulatory changes on business size and portfolio |
| Human capital (engineers) | Key Engineer Retention Rate, Skill Gap Risk KPI ( SASB ) | Declaration of the Importance of Talent | Lack of quantification of the impact of workforce turnover on quality, delivery, and technological competitiveness. |
| Environment (process-based) | High-Energy and Chemical Process Risk, Equipment Testing and Manufacturing KPIs ( ISSB ) | Focused on Scope 1–2 | The process's unique energy and chemical risks are buried in the carbon count. |
| Data and IP protection | Design/Customer Data Protection, Breach Incident/Training/Audit KPIs ( SEC ) | Security Policy Overview | Lack of incident-based KPIs, such as breaches, mock drills, and audit results. |
| Accident/Recall Frame | Managing automated equipment safety incidents by incident, frequency, cost, and recurrence prevention ( NHTSA ) | The principle of “zero accidents and safety first” | Accidents and recalls remain limited to descriptions of principles , with weak links to cost and recurrence prevention KPIs. |
1) The misconception that “ESG in the equipment industry = environment”
In Korea, there is still a tendency to divide ESG into industries with a high environmental (E) weight and those without.
But in the US, semiconductor equipment ESG = quality, process, and customer risk management .
2) Absence of an incident-centered disclosure culture
Korean public notice
- principle
- policy
- While system-centric,
American investors
- Actual events
- Frequency
- expense
- We demand results to prevent recurrence.
3) Limitations of response to ISSB transition period
In the KSSB (ISSB alignment) transition period, companies tend to wait “after the mandate,” but foreign institutions perceive this as an information gap risk .
1) Ostem Implant (※ Based on inspection and precision equipment related business)
- Extensive experience in quality and regulation
- However, disclosure of equipment defects and incident KPIs is limited
→ The US baseline requires incident-based quality leadership.
2) Mediana
- Experience in medical device quality and regulation
- However, there is no explanation of the customer process impact based on semiconductor equipment standards.
(※ Pure players of inspection and measurement equipment can add additional data if required)
In this industry, the American standard means six fixed sections .
1. Quality Incident Ledger
- Defect, Recall, Customer Impact, and Recurrence Prevention KPIs
2. Customer Dependency Risk Table
- Top Customer Weight and Volatility Scenarios
3. Supply Chain Resilience Sheet
- Unification and substitutability of core components
4. Export Control & Compliance Note
- Analysis of the Impact of Export Control Changes
5. Human Capital KPI Pack
- Core Engineer Retention and Training
6. SASB/ISSB Conformance 1-Page Summary Table
- Key ESG Summary for Investors
The key questions foreign institutions have when looking at this industry are:
- How do defects in this company's equipment affect customer fabs?
- How big is the financial impact?
- Is there any evidence that the same accident will not happen again?
- Could supply chain and regulatory changes disrupt sales?
If you can't answer this question with numbers and examples, your report will be classified as a brochure , not an ESG report .
This document is a reference document that structured industry-level ESG information based on publicly available corporate disclosures, website data, and credible disclosure standards (e.g., ISSB/CSRD).
It is not intended for investment decisions, buy/sell recommendations, or valuations of specific companies. The final decision and responsibility for any use of this material lies with the user.
- (A) 2-page Sector Scorecard for Foreign Investors
- (B) Writing Kit for Listed Company Professionals (Including KPIs and Formulas)
- (C) Evidence Pack (ISSB, SASB, SEC, Export Control Evidence Links)
