Rise of Chinese Semiconductor Industry at Northern Huachang... "Next-Generation Semiconductor Industry Growth, Clear Performance Outlook for Second Half"

[Asia Economy Reporter Park Jihwan] Hana Financial Investment forecasted on the 18th that Bukbang Hwacheong's performance outlook for the second half of the year is bright due to the boom in the next-generation semiconductor industry.

Baek Seunghye, a researcher at Hana Financial Investment, stated, "Due to the semiconductor industry's boom in the first half of this year, Bukbang Hwacheong's stock price surged 44%, and continued a moderate upward trend even in September, right after the first half earnings announcement. The capacity expansion effects of foundry clients such as SMIC and Huahong Semiconductor, and memory semiconductor manufacturers Yangtze Memory (YMTC) and CXTC, which became prominent in the second quarter, are judged to have positively influenced the stock price.

According to market research firm TrendForce, while the market shares of the global top two companies, TSMC and Samsung Electronics, slightly declined in the second quarter, the global market shares of SMIC and Huahong Semiconductor, major clients of Bukbang Hwacheong, improved by 0.6 percentage points and 0.5 percentage points respectively compared to the previous year. He said, "Considering that during the second quarter conference call, major semiconductor equipment is scheduled to be delivered in the second half, and the resulting increase in wafer shipments is expected to be reflected in the fourth quarter and next year's first quarter earnings, there is a high possibility that Bukbang Hwacheong's stock price will also show strength in the second half due to the strong sales of its major clients."

The growth of the next-generation semiconductor industry is evaluated as a driving force for performance growth. According to semiconductor market research firm Yole D?veloppement, the gallium nitride (GaN) semiconductor market reached $46 million (approximately 51.5 billion KRW) last year. It is expected to grow at an average annual rate of 70% until 2026, reaching $1.1 billion (approximately 1.2315 trillion KRW). Silicon carbide (SiC) and GaN-based semiconductors are next-generation power semiconductors with improved power efficiency and durability compared to conventional silicon (Si)-based semiconductors. They are emerging as next-generation semiconductor areas used in electric vehicles, smartphones, artificial intelligence (AI), and 5G fields, leading to rapidly increasing demand. Bukbang Hwacheong, which provides etching, deposition (PVD, CVD), heat treatment, and cleaning equipment?the fastest domestically localized among all semiconductor equipment?announced last year that it has introduced third-generation semiconductor equipment into mass production.

Researcher Baek said, "Currently, it is known that Bukbang Hwacheong provides SiC semiconductor furnaces, etching equipment, RTP equipment, oxidation equipment, PVD, and cleaning equipment, and in the GaN sector, it provides etching, PECVD, and cleaning equipment, so performance growth is expected to accompany industrial growth in the future."