[Click eStock] "TSE Anticipates Expanded DRAM Probe Card Sales"

On September 15, Hana Securities analyzed that TSE is raising expectations for growth ahead of expanded sales of DRAM probe cards in 2026.

TSE operates businesses in probe cards, interface boards, test sockets, and OLED inspection equipment, and owns multiple subsidiaries. Its subsidiary Tiger Elec supplies PCBs, which are raw materials for probe cards and interface boards; Megatouch provides pogo pins and interposers; and GM Test offers semiconductor testing services. This enables TSE to secure a stable supply of raw materials and enhance cost competitiveness.

A probe card is a component that connects test equipment and wafers during the wafer testing stage after the front-end semiconductor process, while interface boards and test sockets are key components that connect test equipment and chips during the packaging test stage. In the first half of this year, the standalone sales breakdown was 45% for probe cards, 28% for interface boards, 12% for test sockets, and 14% for OLED inspection equipment.

Kim Minkyeong, a researcher at Hana Securities, stated, "This year, standalone sales are expected to reach 259.8 billion won, an 18% increase year-on-year, and operating profit is expected to rise 15% to 44.1 billion won, resulting in an operating margin of 17%." She added, "In the first half, sales of probe cards to Chinese customers drove overall performance, but in the second half, the entry of local Chinese companies is expected to reduce market share." However, she assessed that this impact will be largely offset by process conversion at other major customers.

Display inspection equipment sales are also expected to remain at last year's level, as investments from Greater China customers are planned. In addition, the consolidated subsidiary Tiger Elec is expected to continue its strong performance after turning a profit in the first half, as demand for PCB development has surged and the company continues to operate at full capacity.

Kim emphasized, "With the completion of DRAM probe card qualification tests for major memory customers in 2026, DRAM probe card sales will expand. DRAM requires two to three times more dies per wafer compared to NAND, demanding higher technical capabilities and resulting in higher unit prices."

She further predicted, "TSE has secured DDR4 references for Greater China customers, which will allow the company to benefit from the localization of probe cards. In addition, probe card sales for NAND are also expected to increase year-on-year, supported by investments in new process transitions by major memory customers."