[Featured Stock] YC Chem, Exclusive Provider of Core Materials for AI Semiconductor Implementation... HBM Process 'Hidden Gem'

YC Chem is showing strong performance. Securities firms' analysis that YC Chem, a key material supplier for the ultimate implementation of artificial intelligence (AI) semiconductors, will play a very significant role appears to be influencing the stock price. Hyundai Motor Securities newly set the target price for YC Chem at 36,000 KRW.

As of 9:29 AM on the 12th, YC Chem is trading at 26,700 KRW, up 9.43% from the previous day.

Minjung Kwak, a researcher at Hyundai Motor Securities, explained, "As the front-end process in HBM manufacturing becomes more important, the increase in the number of extreme ultraviolet (EUV) application layer steps and capacity expansion of major customers will lead to increased exclusive TSV PR sales." She added, "Along with the expected growth of the EUV and ArF PR markets due to the blooming AI semiconductor market, we also anticipate an expansion in the adoption of YC Chem’s EUV and ArF rinses by global semiconductor customers."

Researcher Kwak emphasized, "With the movement of global memory companies aiming to apply MOR to 1c DRAM mass production, performance related to MOR PR thinners and developers is expected to be fully reflected starting in 2025." She noted, "Development is underway for semiconductor wafer special cleaning equipment and high-selectivity phosphoric acid concentration analysis equipment," and predicted, "Sales to customers for both pieces of equipment will occur within this year."

She analyzed, "Following the U.S. government's decision last month to provide subsidies to Absolis’ Georgia plant, a subsidiary of SKC, YC Chem’s glass substrate-related material sector is also expected to become a re-rating factor for additional future performance."

Researcher Kwak explained, "YC Chem expects an increase in TSV PR supply volume, which it currently supplies exclusively, and growth in rinse sales for ArF PR due to the growth of the AI semiconductor market among domestic semiconductor companies." She added, "In 2023, YC Chem acquired a global patent license to sell Inpria patents, a subsidiary of JSR, to customers," and "has started mass production of EUV MOR PR thinners and developers." She said, "Ultimately, YC Chem’s role as a key material supplier for AI semiconductor implementation will become very significant," and concluded, "Development is underway for semiconductor wafer special cleaning equipment and high-selectivity phosphoric acid concentration analysis equipment, and sales to customers for both pieces of equipment are expected within 2024."