[This Week's Industry Insight] Hanmi Semiconductor to Maintain HBM Market Leadership for the Foreseeable Future

HBM Essential Equipment 'TC Bonder' World No.1
Monopoly Position to Be Maintained for Now
Hanwha Precision Machinery and ASMPT Potential Competitors
Stock Price 'Shaken' Amid Possible Competition
HBM Oversupply Concerns Are Excessive

Editor's NoteDear individual investors dreaming of successful investments. How well do you know the stocks you invest in with your own money? In the unrefined and chaotic online environment filled with all kinds of information, Asia Economy aims to be your hands and feet, eyes and ears, delivering accurate information about companies. Each week, we focus on companies that rank high in stock inquiries from the financial information provider FnGuide, delivering everything from basic information to analyses of related companies such as partners, clients, and investors. We will explain companies' financial conditions, performance status, and future value in an easy-to-understand manner. We meet you every week under the name of "This Week's Watchlist," highlighting stocks of interest for the week.

There is a domestic company that must be mentioned when talking about Nvidia. That company is Hanmi Semiconductor. Unlike the recent attention from individual investors, Hanmi Semiconductor has a long history. It originated from 'Hanmi Mold,' founded by founder Kwak No-kwon in the 1980s to manufacture precision molds and semiconductor automation equipment.

The changed status of Hanmi Semiconductor is due to the presence of High Bandwidth Memory (HBM) equipment. In 2017, by developing the thermal compression bonding equipment (TC bonder), an essential production device for HBM, together with SK Hynix, global semiconductor companies began to take notice. In the semiconductor market, the 'Nvidia-SK Hynix-Hanmi Semiconductor' value chain is now mentioned almost as a proper noun.

HBM Essential Equipment TC Bonder Market Share No.1... Record High Q3 Performance

There is a reason why Nvidia always appears together when mentioning Hanmi Semiconductor. It is because Hanmi Semiconductor is the market share leader for the 'thermal compression (TC) bonder,' a DRAM stacking device for HBM. The TC bonder is an essential piece of equipment used in the HBM process. HBM is made by stacking DRAM chips vertically. The TC bonder is the equipment that attaches the semiconductor chips, processed by thermal compression bonding, onto the circuit substrate.

SK Hynix applies the MR-MUF process, which bonds the DRAM chips using adhesive when stacking. On the other hand, Samsung Electronics applies the TC-NCF process. Hanmi Semiconductor owns TC bonder equipment that can be used for both TC-NCF and MR-MUF methods. However, it only supplies TC bonder equipment to SK Hynix and Micron. Despite this, it currently maintains the No.1 market share (65%) in the TC bonder equipment market.

Hanmi Semiconductor's status is reflected in its performance. On a consolidated basis for Q3 this year, sales reached 208.5 billion KRW, a 568.4% increase compared to the same period last year. Operating profit for the same period surged 3,320% to 99.3 billion KRW. This is the highest quarterly performance since the company's founding. The record quarterly results were achieved as deliveries of TC bonders, manufacturing equipment for HBM used in artificial intelligence (AI) chips, began in earnest in Q3.

Looking at the stock price trend, it surged 71.3% from 60,800 KRW on the first trading day of this year (January 2) to 104,200 KRW last Friday (October 18). On June 14, it even reached an all-time high of 196,200 KRW during intraday trading. Compared to the stock price trends of Samsung Electronics (79,600 KRW → 59,200 KRW, down 25.6%) and SK Hynix (142,400 KRW → 187,300 KRW, up 31.5%) during the same period, the increase rate is even more remarkable.

Market Focuses on Whether a Competitive Landscape for TC Bonder Will Form

Recently, subtle changes have been detected in the market's view of Hanmi Semiconductor. First, there are speculations that the monopoly position it has maintained in the HBM market may change. The trigger is its key client, SK Hynix. It is known that SK Hynix is diversifying its TC bonder suppliers to reduce costs and secure supply chain safety.

According to recent media reports, SK Hynix tested equipment from Hanwha Precision Machinery. If the results were good, large-scale orders were planned, but it is presumed that quality certification was not achieved. SK Hynix is also reportedly interested in the TC bonder from Hong Kong semiconductor equipment company ASMPT. The recent stock price plunge is interpreted as reflecting market concerns that a competitive landscape may emerge.

However, evaluations still favor Hanmi Semiconductor's technological competitiveness in TC bonder. Since ASMPT's quality certification test is still in the early stages, it is analyzed that Hanmi Semiconductor's dominant position will continue for the time being. Kwak Min-jung, a researcher at Hyundai Motor Securities, stated, "SK Hynix has been conducting quality tests on potential competitors' TC bonders as part of its supplier diversification strategy but reportedly failed, and another potential competitor also has a significant technological gap compared to the company," adding, "There is no wavering in Hanmi Semiconductor's fundamental technological competitiveness." She further predicted, "With the expansion of HBM capacity in 2025, orders for the company's Dual TCB will continue to increase, so the TC bonder will remain a core competitive advantage for Hanmi Semiconductor."

"Concerns Over HBM Oversupply Are Excessive"

Subtle changes have been detected in the market's view of Hanmi Semiconductor recently. First, there are speculations that the monopoly position it has maintained in the HBM market may change. The trigger is its key client, SK Hynix. It is known that SK Hynix is diversifying its TC bonder suppliers to reduce costs and secure supply chain safety.

According to recent media reports, SK Hynix tested equipment from Hanwha Precision Machinery. If the results were good, large-scale orders were planned, but it is presumed that quality certification was not achieved. SK Hynix is also reportedly interested in the TC bonder from Hong Kong semiconductor equipment company ASMPT. The recent stock price plunge is interpreted as reflecting market concerns that a competitive landscape may emerge.

However, evaluations still favor Hanmi Semiconductor's technological competitiveness in TC bonder. Since ASMPT's quality certification test is still in the early stages, it is analyzed that Hanmi Semiconductor's dominant position will continue for the time being. Kwak Min-jung, a researcher at Hyundai Motor Securities, stated, "SK Hynix has been conducting quality tests on potential competitors' TC bonders as part of its supplier diversification strategy but reportedly failed, and another potential competitor also has a significant technological gap compared to the company," adding, "There is no wavering in Hanmi Semiconductor's fundamental technological competitiveness." She further predicted, "With the expansion of HBM capacity in 2025, orders for the company's Dual TCB will continue to increase, so the TC bonder will remain a core competitive advantage for Hanmi Semiconductor."