[Special Stock] DI Develops HBM Equipment at Client's Request... CXL Expansion Also an Opportunity

D.I is showing strength. It appears that the news of its subsidiary receiving development requests from clients to develop burn-in testers for high-bandwidth memory (HBM) is influencing the stock price.

As of 1:58 PM on the 4th, D.I is trading at 16,830 KRW, up 22.77% from the previous day.

Researcher Yang Seung-joo from Meritz Securities explained, "Due to shortages, the end customers are currently focusing on expanding production capacity and reducing supply lead times for HBM," adding, "To shorten lead times, HBM undergoes burn-in and final testing at the wafer level rather than at the package level before supply."

He continued, "Along with the rapid expansion of HBM production capacity, the production capacity of Advantest equipment, a Japanese wafer burn-in and final test inspection equipment company, has reached its limit," and added, "Since only wafer-level testing is conducted for supply, low yield issues continue."

He stated, "To resolve these issues, DP, a subsidiary of D.I, is developing burn-in testers for HBM based on client development requests," emphasizing, "A leading domestic HBM company is approaching localization by starting with burn-in testing, which is a relatively low-performance area, rather than the high-performance final test area that requires Advantest equipment."

Researcher Yang analyzed, "When burn-in tester equipment is used, there are advantages in terms of yield, cost, and lead time compared to conducting tests simultaneously with Advantest equipment," and "Since development is based on the technology of the successfully developed DDR5 wafer burn-in tester, the likelihood of successful development and delivery in the future is high." He expects that D.I will fully benefit from the localization of HBM inspection equipment going forward.

He also mentioned, "There is potential benefit from the spread of Compute Express Link (CXL)," explaining, "In the case of CXL led by domestic memory companies, the existing system's main DRAM is used as is through the CXL interface." He added, "With the increase in DRAM installation and production, the supply of DRAM test equipment is expected to expand," noting, "D.I is currently supplying package burn-in testers for DDR5." Furthermore, he said, "DRAM for CXL is also expected to undergo package burn-in testing using D.I equipment," concluding, "There is clearly potential benefit from the expansion of the CXL ecosystem."