On the 29th, IBK Investment & Securities raised the target price of SKC from 136,000 KRW to 160,000 KRW, stating that SKC will receive a large-scale subsidy under the US Semiconductor Act.
Lee Dong-wook, an analyst at IBK Investment & Securities, said in a report on the same day, "Absolics, a subsidiary of SKC that manufactures semiconductor glass substrates, will receive a subsidy of 76 million USD (approximately 100 billion KRW) from the US government," adding, "This is the highest level among companies that have received subsidies so far, and if they expand large-scale production lines, they plan to apply for additional subsidies to significantly reduce investment costs."
Absolics completed its first plant in Georgia, USA, in the first quarter of this year. It is currently undergoing trial operations, with sample testing scheduled for the second quarter and final reliability evaluation planned for the second half of the year. The second plant is expected to respond to the market with large-scale production methods, increasing production volume by 5 to 20 times compared to the first plant.
The analyst evaluated, "Glass substrates can apply more circuits and equipment than plastic and enable efficient data processing through high-speed data transmission," adding, "They are optimized for artificial intelligence (AI)."
He also noted, "ISC, a consolidated subsidiary of SKC, is undergoing structural improvement and securing new businesses, and plans to sequentially relocate production lines to Vietnam from the second half of the year to reduce costs," forecasting, "Sales of mass-produced sockets related to AI accelerators will also increase in the second half of the year thanks to the expansion."
He further expressed expectations, "In the copper foil sector, certification from major domestic customers for the Malaysia plant is expected to be completed, and new mid- to long-term supply contracts may also occur."
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