"ISC Improves Profitability with New Product Impact"

[Asia Economy Reporter Hyungsoo Park] Shin Young Securities forecasted on the 5th that ISC's profitability will improve due to the effect of new products. They newly presented a 'Buy' investment opinion and a target stock price of 38,000 KRW.

Researcher Seonghun Lee of Shin Young Securities explained, "From the second quarter of this year, rubber sockets will be applied to CPUs for the first time," adding, "The new AP rubber sockets have been delivered to client companies, significantly improving the gross profit margin."

He continued, "The proportion of non-memory sales has risen from 52% at the end of last year to over 60% currently," and added, "ISC has set a policy to expand market share by developing many new non-memory rubber sockets."

He emphasized, "In the case of Pogo sockets, precise pins are required due to semiconductor miniaturization, but rubber sockets are not pin-type, so thickness adjustment is relatively easier."

Researcher Lee analyzed, "Rubber materials that disperse pressure minimize terminal damage when rubbing against semiconductor devices," and "If elastomers advantageous in temperature and resistance are developed, the rubber socket market share will expand."

Furthermore, he predicted, "As miniaturization and density increase, semiconductor circuits are becoming more complex," and "The benefits for socket companies will continue."

He explained, "Pogo sockets are mainly used for non-memory, and rubber sockets are mainly used for memory," adding, "Pogo is manufactured by molding, and the process is easier than rubber, enabling small-volume production of various types."

He added, "It is used in various non-memory products," and emphasized, "Rubber is mainly used in AP and image sensor packaging, which allow mass production of a few types, and recently expanded to CPU packaging."