Korea Circuit is showing strong performance. This appears to be due to increased interest in on-device AI-related stocks as AI company stocks surged in the U.S. stock market. Riding the 'on-device' trend where generative AI expands to personal devices like smartphones and laptops, demand for memory semiconductors with high data processing capabilities while reducing power consumption is expected to surge.
As of 10:20 AM on the 13th, Korea Circuit was trading at 18,850 KRW, up 1,850 KRW (10.88%) from the previous trading day.
Samsung Electronics and SK Hynix are focusing on 'LPDDR (Low Power Double Data Rate) 5' chips, characterized by low power consumption as a mobile DRAM standard, bundled into high-capacity modules called 'LPCAMM (Low Power Compression Attached Memory Module)'. Using LPCAMM can reduce the mounting area by up to 60% compared to existing solutions. Performance is expected to improve by up to 50%, and power efficiency by up to 70%.
Samsung Electronics and SK Hynix are developing LPCAMM technology. Their strategy is to accelerate entry into the on-device AI market by leveraging LPCAMM's strengths. In September last year, Samsung Electronics became the first in the industry to develop LPCAMM capable of transmitting 7.5 gigabits (Gb) per second and completed operation verification on Intel platforms. SK Hynix developed LPCAMM2 supporting a transmission speed of 9.6 Gb per second in November 2023.
LPCAMM is likely to expand its applications beyond on-device AI to servers and data centers. Power efficiency is increasingly emphasized in large-scale infrastructures.
According to Korea Circuit’s quarterly report, they are developing modules for DDR5 High Speed (6400 Mbps) products, next-generation enterprise SSDs, CXL (Compute Express Link), and LPCAMM. They expect visible profit increases as volume expands significantly this year. Enterprise RF-SSD is also under development in collaboration with major global semiconductor companies. They anticipate a bright outlook with a stable product portfolio and pursuit of high profitability.
Since 2020, Korea Circuit has increased its share in high-value FCBGA, expecting future sales growth and average price increases. The long-term business outlook is very positive. By expanding business to global semiconductor customers, they expect to broaden their business scope across all product lines, from low-end products to high-value FCBGA products.
Korea Circuit has also firmly established itself as a main vendor for the Galaxy S series and foldable smartphones based on differentiated technology and quality. It has solidified its main vendor position in augmented reality (AR) and virtual reality (VR) devices, smart glasses, Galaxy Watch and Buds series, and various wearable devices. The OLED HDI PCBs supplied by Korea Circuit are distributed globally to all manufacturers, including key manufacturers in Korea and the U.S., through major Korean customers.
AI-related company stocks are surging in the U.S. stock market. British semiconductor design company ARM surged 29.3% after its earnings announcement. ARM’s stock price rose 93% within three trading days after the earnings release. Compared to its IPO in September last year, the stock price has nearly tripled. Over 90% of APs used in smartphones worldwide utilize ARM’s designs.
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