[Click eStock] "ITEC Gains Attention for Semiconductor Testing Expertise in the AI Era"

On April 22, independent research firm ValueFinder analyzed that ITEC, a company specializing in semiconductor testing, is attracting industry attention as the importance of the test market is highlighted alongside growing demand for artificial intelligence (AI) semiconductors.

Recently, there has been heightened interest in fabless semiconductor companies such as FuriosaAI in the domestic stock market. In this environment, ITEC has demonstrated its competitiveness by securing a diverse client base of over 170 companies, including Nextchip, Telechips, ADTechnology, and LG Electronics.

Lee Choongheon, a researcher at ValueFinder, stated, "The company owns the largest number of Advantest machines in Korea, which allows it to collaborate with a wide range of fabless companies and design houses without being dependent on any particular client." He also noted that ITEC's differentiated competitiveness comes from not only its testing equipment but also its in-house development of more than 100 semiconductor test programs annually, supported by a team of 28 experienced R&D personnel.

Some view the semiconductor testing industry as a field with low entry barriers, where anyone can participate as long as they have testing equipment. In response, Lee emphasized, "The most critical factor is software programming expertise, and in reality, this is an industry with high entry barriers."

ITEC is also expected to benefit from the expansion of the autonomous vehicle market. Currently, about 500 automotive semiconductors are installed in internal combustion engine vehicles, but it is projected that electric vehicles will require around 1,500, and autonomous vehicles up to 3,000. Lee stated, "As a company specializing in automotive semiconductor testing, ITEC is expected to benefit from the electrification of vehicles."

Additionally, at the end of last year, ITEC strengthened its growth foundation by securing approximately 110 billion won in cash and cash equivalents, including proceeds from the sale of Samsung Medicos. To meet the demand for high-performance semiconductor testing, the company plans to introduce one V93K-PS5000 machine this year and a total of five by next year, with the setup cost per machine at around 7 billion won.

Researcher Lee analyzed, "The company is preparing various measures to achieve external growth and create synergy effects. Profitability improvement is expected through the sale of non-core business units, increased sales and enhanced capital efficiency, and higher testing prices driven by the trend toward high-performance semiconductors."