"Semiconductor Materials, Parts, and Equipment, Leading Process Investment to Increase from Second Half of the Year"

DS Investment & Securities stated on the 19th that there is sufficient justification for capital expenditures (CAPEX) on advanced process equipment in 2025, and predicted that investments in advanced processes will increase starting in the second half of the year.

Researcher Lee Surim of DS Investment & Securities explained, "The front-end equipment is expected to show quarterly performance improvements with a low-high-low flow," adding, "Considering the cannibalization effect on general DRAM production capacity (CAPA) caused by high-bandwidth memory (HBM), the justification for new front-end investments in 2025 is increasing." She also said, "In the back-end process, orders for HBM-related equipment have been steadily continuing since the second half of last year, and differentiated performance growth is expected accordingly," and "Meanwhile, material and component companies generally have a larger sales proportion toward NAND, but the performance momentum is still lacking."

Researcher Lee continued, "Ultimately, it is the right time to focus on front-end equipment companies based on the visibility of performance rebound and increased advanced process equipment investments after the second half of the year," and judged, "At the current point, the order momentum from Samsung Electronics' value chain, where P4 investment resumption movements are expected, is significant." She added, "Considering the cannibalization effect on general DRAM production capacity caused by HBM, DRAM investment is essential, and the most important factor in HBM for heat dissipation versus power consumption is ultimately front-end design capability," concluding, "Investments in advanced processes will increase starting in the second half of the year."