[Click eStock] "TFE, Expected to Benefit from Client's New Memory Semiconductor Product Launch"

On the 22nd, IBK Investment & Securities stated that TFIE is considered a beneficiary of its client’s new memory semiconductor product launch.

TFIE is a company that manufactures parts and equipment in the semiconductor testing field. It is recognized as the only domestic company capable of turnkey supply of parts used in package testing. In 2019, it entered the test socket market by acquiring Japan’s JMT, which holds the original rubber socket technology, from ISC. Its main products include boards, sockets, and COK (Change Over Kit).

Researcher Geonjae Lee of IBK Investment & Securities explained, "We believe the semiconductor industry recovery will lead to increased demand for TFIE’s package test parts," adding, "The memory semiconductor market in 2024 is expected to grow due to the base effect from the previous year, inventory stocking incentives from price bottoms, and the impact of new products such as HBM and DDR5."

He continued, "Although client utilization rates declined until the third quarter this year, resulting in performance below market expectations, recovery has been observed since last October, and fourth-quarter results are expected to grow compared to the previous year."

Next year, a full-scale recovery of the memory semiconductor market is anticipated, so TFIE is also expected to benefit from increased production by its upstream clients.

The researcher stated, "Since the design of sockets and boards required for each semiconductor chip differs, the emergence of new products like DDR5 and HBM signifies sales growth," and added, "Starting in 2024, the penetration rate of DDR5 is expected to rise rapidly, and the increase in server volumes will highlight the importance of the testing process."

He further added, "Additionally, HBM is expected to grow at a compound annual growth rate (CAGR) of 62% until 2027, showing more than three times the growth rate compared to existing DRAM products."