[Click eStock] "ITech, Expected to Benefit from AI and Automotive Semiconductor Testing"

Hanyang Securities analyzed on the 8th that ITEC is expected to benefit from the artificial intelligence (AI) and automotive semiconductor testing markets. No investment opinion or target price was provided.

ITEC imported a total of about 70 units of V93K-PS800 and V93K-PS1600 equipment from Advantest and conducted testing. Last year, they completed the introduction of two V93K-PS5000 units, which are dedicated testing equipment for AI and automotive semiconductors under 5 nanometers. Researcher Lee Jun-seok of Hanyang Securities stated, "Market research firm Gartner forecasted that the system semiconductor market size will rise to $352.8 billion by 2028, with the share of AI semiconductors and automotive semiconductors increasing to 63.1%. This means that AI and automotive semiconductors will lead the growth of system semiconductors."

He added, "As semiconductors become more advanced, testing equipment is also becoming more sophisticated. The more advanced the chip, the more tests and inspections are required. The V93K-PS5000 equipment recently introduced by the company is essential testing equipment used for under 5 nanometer processes. Since 2 to 4 additional units are planned to be introduced this year, it is expected that both demand (Q) increase due to market expansion and price (P) increase due to unit price rise will be observed simultaneously."

He explained, "The V93K-PS5000 is a high-priced equipment costing about 7 billion KRW, with a high entry barrier, and suitable programs are required to operate the equipment. Most testing companies receive programs from their clients to use the equipment, but ITEC has the technological capability to develop and use its own programs."

He evaluated, "ITEC is not only the only company in Korea to have introduced the V93K-PS5000 equipment but also the only company to have developed the program to operate this equipment. There is also a possibility that the company could monopolize the testing of AI and automotive semiconductors mass-produced in ultra-fine process nodes in the future."