TLB's stock price is on the rise. The stock price appears to be influenced by securities firms' analyses suggesting that TLB's performance will improve as major customers SK Hynix and Samsung Electronics expedite the adoption of Compute Express Link (CXL). CXL is a next-generation interface that efficiently connects CPUs, GPUs, and memory to increase data processing speeds. TLB is focused on memory module substrates and is understood to have a development advantage in next-generation products for CXL substrates.
Additionally, the recent surge in demand for storage for artificial intelligence (AI) data center servers, which has led to rising prices for solid-state drives (SSD), is also creating a favorable environment for TLB's performance improvement.
As of 9:37 AM on the 17th, TLB was trading at 27,800 KRW, up 1,650 KRW (6.31%) from the previous trading day.
Choi Jun-won, a researcher at Shin Young Securities, stated, "Intel announced that it will release the Xeon 6 processor supporting CXL 2.0 within the second quarter," adding, "SK Hynix and Samsung Electronics are also preparing for mass production of DRAM supporting CXL 2.0."
He continued, "TLB is exclusively providing CXL printed circuit board (PCB) module samples to Samsung Electronics and Hynix," and added, "It is understood that they have provided about six or more samples."
He emphasized, "The average selling price (ASP) of the CXL sample model (understood to be around 16 layers) is about twice that of the existing DDR5," and forecasted, "When a high multi-layer model with 24 layers or more is released, the ASP is expected to be even higher."
Researcher Choi predicted, "This year, performance will improve due to the mass production effect of CXL PCB modules and the expansion of AI server demand."
TLB established the first mass production system for SSD PCBs in Korea. It manufactures PCB modules for DRAM and SSD. The customer distribution is approximately 50% each for SK Hynix and Samsung Electronics.
Oh Hyun-jin, a researcher at Kiwoom Securities, analyzed, "For CXL substrates, high value-added products requiring higher layers and additional processes compared to existing R-DIMM products are needed," and added, "If TLB delivers high value-added CXL substrates within this year, a steep increase in profitability is possible."
He emphasized, "Attention is needed as TLB is a leading company in the market and can benefit significantly from the growth of the memory semiconductor market." He added, "Considering TLB's solid position in the SSD module substrate market and the increasing proportion of high value-added server SSD substrates, TLB's external growth and profitability improvement are expected."
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