ST STI Straits Times Index Loading... : Investor Sentiment and Bull/Bear Views

Back-end equipment names lagged the first-half rally but sentiment is reviving with HBM investment. The old pattern where back-end investment follows front-end is weakening because HBM and AI accelerator demand are causing packaging and test equipment shortages first. Foundries and memory makers are allocating more capex to advanced packaging, test, and masks, widening beneficiaries to HBM bonding laser, test equipment, and outsourced packaging/test; PSK Holdings, EO Technics, and STI are cited as representative KOSDAQ back-end equipment beneficiaries.

Back-end/HBM packaging equipment is attracting renewed interest because HBM and AI accelerator demand are causing packaging and test equipment shortages before front-end investment fully finishes. Samsung and SK hynix are allocating 10-20% of capex to advanced packaging, test, and masks, and HBM bonding laser, test, and OSAT demand is broadening. The article names PSK Holdings, EO Technics, and STI as representative KOSDAQ back-end equipment beneficiaries.

The speaker says US analog and power semiconductor stocks have rallied, and the same strength is spreading to Korean analog and power semiconductor names. DB HiTek has continued to rise with the Korean analog group, and expectations are building for power semiconductors amid shortages. He also calls STI attractive and rising, disputing claims that investors are trapped at 36,000 won because it never traded there.