[Featured Stock] Surplus, World No.1 in Semiconductor Refurbishing... Major Client TSMC Invests 113 Trillion Won

[Asia Economy Reporter Hyungsoo Park] Surplus Global is showing strong performance. The news that Taiwanese foundry company TSMC is making a large-scale investment appears to have influenced the stock price.

As of 11:31 AM on the 1st, Surplus Global is trading at 5,490 KRW, up 5.78% from the previous day.

According to Bloomberg News, Taiwanese foundry company TSMC announced that it will invest a total of $100 billion (approximately 112.76 trillion KRW) over the next three years to expand semiconductor production capacity.

Choi Seonghwan, Chief Researcher at Research Allem, analyzed, "Surplus Global is the world's number one semiconductor refurbish company, supplying used equipment to more than 3,000 foundry companies, and is expected to benefit from continued expansion of facility investments."

Due to the US-China trade dispute and the impact of COVID-19, new investments by integrated device manufacturers (IDMs) such as Intel have been delayed, leading to a recent shortage in semiconductor supply. As the era of 5G, autonomous driving, artificial intelligence (AI), and big data fully unfolds, demand is surging rapidly. Recently, the foundry industry has experienced a boom to the extent that production disruptions have occurred due to overwhelming orders. The foundry market size this year is expected to grow 13.6% year-on-year to $68.2 billion.

Used semiconductor equipment is generally sold by semiconductor equipment companies to Samsung Electronics, SK Hynix, Micron, Toshiba, and others. When utilization decreases due to new process designs or changes in some processes, the equipment is put up for auction again and sold. Globally, about 7,000 to 8,000 units of used semiconductor front-end equipment are sold annually through auctions.

Surplus Global, a company that purchases and sells used semiconductor equipment, buys semiconductor equipment through auctions and ultimately sells it to fabs with demand. It mainly sells to TSMC, UMC, SMIC, Dongbu Hitek, and others.