[Click eStock] "Simtek, Expected to Return to Profit This Year"

Daishin Securities forecasted on the 28th that Simtek will turn profitable this year as the proportion of high value-added products increases.

Park Kang-ho, a researcher at Daishin Securities, explained, "From next month, the concentration phenomenon related to artificial intelligence (AI) and high-bandwidth memory (HBM) is expected to ease somewhat," adding, "With the recovery of IT demand in the second half and an increase in semiconductor shipments, the profitability of memory PCB companies will improve."

He continued, "We anticipate Simtek to benefit from the ripple effect as it has secured all three major memory companies?Samsung Electronics, SK Hynix, and Micron?as clients," and added, "The recent increase in demand for server-oriented SSD modules and expanded production will also contribute to further improvements in Simtek's profitability."

Researcher Park emphasized, "Operating profit is estimated to reach 46.6 billion KRW this year and 105.3 billion KRW next year," highlighting, "The increase in non-memory sales will have a significant effect on profitability improvement."

He analyzed, "With the global expansion of AI investment, semiconductor demand is increasing in servers and networks," and predicted, "An increase in demand for server-oriented SSD modules and related FC CSP is expected." He added, "As Samsung Electronics, SK Hynix, and Micron increase server-oriented SSD production to meet demand, sales of memory modules and related substrates such as FC CSP will simultaneously rise."