[Click eStock] "Oros Technology, New Equipment Demand for HBM... Growth Potential Up"

Independent research firm FS Research diagnosed on the 16th that Oros Technology's long-term growth potential has increased as new equipment demand arises for post-processing targeting high-bandwidth memory (HBM).

Oros Technology, established in 2009, is a semiconductor equipment company that develops and manufactures equipment for measurement and inspection in the lithography process. Its main revenue so far has come from Overlay equipment that measures the alignment status between lower and upper patterns during the stacking of circuit patterns in the semiconductor lithography process.

Hwang Se-hwan, a researcher at FS Research, said, “With semiconductor demand expected to increase in the mid to long term due to AI and electrification, the lithography process is projected to grow due to semiconductor miniaturization, and accordingly, demand for Overlay equipment will also expand. ASML recently announced sales targets of 40 billion euros in 2025 and 60 billion euros in 2030. In this context, K Company's market share in Overlay equipment is dominant, there are almost no competitors, and the profit margin is quite high at over 40%.”

He analyzed, “From the end user's perspective, they need to grow vendors to aim for price reductions, but since there are few competitors, customers have no choice but to grow together with companies like Oros Technology.”

He also stated, “The second reason for expecting growth is that sales to customer H Company reached 50% in China last year, and since S Company has been conducting tests for several years, if the industry improves and investments proceed, sales to S Company are also expected. Additionally, testing by a Japanese company is expected to conclude this year, making it a situation where sales can be anticipated next year.”

Furthermore, he analyzed, “New equipment demand has also emerged for post-processing targeting HBM triggered by AI, and since the end of last year, we have received orders for equipment worth 15 billion KRW from Samsung Electronics. We have successfully expanded our domain not only in front-end processes but also in post-processing, and this is also an area where customer expansion is possible in the mid to long term.”

Finally, he forecasted, “Oros Technology has been developing Thin-Film equipment used in all front-end processes for several years. If it becomes clear that they can enter this market, which is about twice the size of the Overlay market, there is a possibility that valuation will rise sharply even if sales do not materialize.”