Jeon Byeong-seo

The sharp sell-off in Korean memory stocks triggered by CXMT's IPO and China's DUV equipment news is an overreaction. The DUV tool is a prototype that will take 3-4 years to mass-produce, and China still lacks EUV for advanced DRAM and HBM. Meanwhile, US big techs have no time to switch to a low-cost AI model and will keep increasing capex, sustaining demand for high-performance memory. Samsung Electronics and SK hynix are earning record profits and the technical lead remains intact.

The sharp sell-off in Korean memory stocks triggered by CXMT's IPO and China's DUV equipment news is an overreaction. The DUV tool is a prototype that will take 3-4 years to mass-produce, and China still lacks EUV for advanced DRAM and HBM. Meanwhile, US big techs have no time to switch to a low-cost AI model and will keep increasing capex, sustaining demand for high-performance memory. Samsung Electronics and SK hynix are earning record profits and the technical lead remains intact.

Hanmi Semiconductor holds a near-monopoly on TSV (Through-Silicon Via) equipment, which is essential for stacking HBM layers. Because China lacks TSV equipment, it cannot produce high-bandwidth memory domestically in the near term. Continued global HBM expansion directly benefits Hanmi Semiconductor as the dominant equipment supplier.

Tesla's Full Self-Driving (FSD) approval in China, even partial, will boost its sales and market share in the Chinese electric vehicle market, as autonomous driving is the key competitive battleground, and this will likely be a point of agreement from the summit.