[Click e-Stock] "TF, Bright Outlook for Both Memory and Non-Memory"

IBK Investment & Securities has forecasted that TF, a semiconductor process company, will accelerate its growth in both scale and profitability.

TF is the only company in Korea that supplies all three test resources-test boards, test sockets, and change over kits (COK)-used in semiconductor testing processes to all four sub-processes.

Since its listing, TF has recorded its highest-ever quarterly performance. In the third quarter, the company posted sales of 27.2 billion won and operating profit of 4.8 billion won, representing year-on-year increases of 57.8% and 1,885%, respectively.

Kim Yoohyuk, a researcher at IBK Investment & Securities, explained, "The main driver of this performance improvement was non-memory product sales, which reached 22.4 billion won. This is believed to be due to increased demand for mobile APs and communication chips from major customers."

Kim added, "At the time of its listing in 2022, the company set a goal to achieve a 50% share of non-memory sales by 2025. However, the cumulative non-memory sales share for the third quarter reached 66.6%, exceeding the target."

TF is expected to continue its earnings growth into 2026. Kim stated, "As demand for server DRAM increases, supply and demand conditions are expected to tighten, supporting a continued recovery in the memory market. As a result, DRAM test socket sales are projected to rise significantly."

Kim further explained, "The expansion of mobile AP adoption by major customers, along with the ramp-up of CPO (Co-Packaged Optics), HBF (High Bandwidth Fabric), 2.5D packaging, and SOCAMM2 shipments to new overseas clients, is also expected to contribute to improved performance."

He also noted, "The ongoing expansion of the Hwaseong plant is scheduled for completion in February next year. Once full-scale operations begin in the first half, socket production capacity will more than double compared to current levels, which is expected to further accelerate growth in both scale and profitability."