[Asia Economy Reporter Yoo Hyun-seok] Signetics is showing strong performance. Expectations that Samsung Group's large-scale investments will focus on semiconductors seem to be influencing the stock price.
As of 9:41 AM on the 25th, Signetics was trading at 1,900 KRW, up 11.76% (200 KRW) compared to the previous trading day.
Kim Young-geon, a researcher at Mirae Asset Securities, analyzed, "Among Samsung Group's planned investment amount of 240 trillion KRW over the next three years, Samsung Electronics' investment is estimated to be 217 trillion KRW, which corresponds to 90%. The expected domestic investment by Samsung Electronics is estimated at 169 trillion KRW."
He added, "The incremental domestic investment of 50 trillion KRW over three years is expected to mostly contribute to the semiconductor sector," specifying, "The detailed breakdown includes 12 trillion KRW for DRAM, 11 trillion KRW for NAND, 8 trillion KRW for foundry, and 18 trillion KRW for company-wide R&D."
He emphasized, "Compared to the previous three-year investment cycle, significant growth in investment is expected in the foundry, NAND, and display sectors," and noted, "It is meaningful that the mid- to long-term growth visibility of the semiconductor materials, parts, and equipment supply chain has increased."
Signetics is a domestic semiconductor assembly and test specialist company that began semiconductor manufacturing in 1966. It develops and supplies specialized products tailored to customer requirements and semiconductor market conditions in a timely manner. Depending on product performance and requirements, it develops highly reliable and thermally and electrically superior package products. Its major customers include Samsung Electronics, SK Hynix, and Broadcom. As of last year, the sales ratio was 38% memory and 62% non-memory. Samsung Electronics and Broadcom accounted for 32% and 25%, respectively, representing a high proportion.
Signetics possesses cutting-edge packaging technologies required in the global semiconductor package market, such as FlipChip, Thermal Enhanced BGA (Ball Grid Array), FBGA (Fine Pitch BGA), and MCM (Multi-Chip Modules). Its main products include laminate packages, flip-chip packages, and leadframe packages. With the Fourth Industrial Revolution, the demand for system semiconductors in IoT, autonomous vehicles, and artificial intelligence semiconductor fields is expected to expand significantly, naturally leading to growth expectations for semiconductor packaging companies.
Signetics is increasing sales by developing fingerprint sensor package technology. It is mass-producing the Recon flip-chip, a high value-added premium semiconductor packaging type, through development and continuous investment. Recently, it has been investing in and developing LAB (Laser Assisted Bond system) technology to generate sales in response to the miniaturization and multifunctionalization of electronic devices. Leveraging its technical advantages, the company plans to continue efforts in developing premium semiconductor packaging products.
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