Ideas
Korean chip suppliers benefit from capacity expansion.
Kwon Tae-woo argues that Korean semiconductor materials, equipment, and components companies are entering a broad capacity-expansion cycle as HBM investment broadens into conventional DRAM and new greenfield lines. Samsung's P4/P5 and SK hynix's M15X/P&T7 ramps should increase processed wafer volume, test time, and materials usage, so supplier earnings can rise even if memory prices fall. The group is not uniform, and he favors names with visible order and earnings timing, especially from late 2025 through 2027-2028.
DRAM shortage supports memory pricing.
He sees DRAM supply staying tight because AI server demand is increasing, HBM and leading-edge DRAM consume substantially more wafer capacity per bit, and long-term supply contracts lock up capacity at Samsung, SK hynix, and Micron. Monthly supply-demand balance could reach a 5.7% deficit by 2027, with shortage conditions extending to 2028. This is a supportive setup for memory pricing and memory makers, though the trade focus is downstream suppliers.
Back-end outsourcing drives OSAT equipment growth.
He argues that semiconductor back-end/post-processing is shifting from a variable support role into a core investment area. HBM and advanced packaging require more test and packaging capacity, while Samsung, SK hynix, and TSMC are outsourcing conventional back-end work and expanding domestic and overseas OSAT bases. New backend lines in Korea and Vietnam, the P&T7 ramp, and IDM outsourcing should drive equipment orders and OSAT volumes from Q4 2025 and create a strong 2026-2027 earnings intersection; front-end sentiment is crowded, leaving room for back-end valuation and EPS catch-up.
Unitest gains HBM test volume in 2026.
Unitest is a wafer tester with high SK hynix exposure and is now entering HBM4 wafer testing. As SK hynix's P&T7 line opens, tester volume should be much larger than at P&T6, where DI captured most orders; Unitest should therefore gain volume and earnings stability in 2026. Its solar business may also improve next year, and the stock remains far below its prior high, so he expects recovery toward that high.
DI has first-mover HBM tester edge.
DI is the first vendor for SK hynix HBM4 wafer testers and won most of the P&T6-related tester volume, giving it current technology and earnings leadership. However, because P&T7 is much larger and Unitest is entering, DI may have less incremental upside than Unitest next year; it remains a company-specific supply-chain monitorable.
EO Technics benefits from packaging equipment orders.
EO Technics makes laser marking and dicing equipment and has global top-tier competitiveness. It should benefit from simultaneous Samsung front-end and back-end investment, new equipment needs, and TSMC/global OSAT outsourcing of advanced packaging; orders from domestic and global OSATs should appear meaningfully in 2026 earnings.
SFA Semicon gains from Samsung DRAM outsourcing.
SFA Semicon is the biggest beneficiary of Samsung's outsourcing of conventional DRAM back-end/packaging, after Samsung insourced DDR5 in the prior cycle. Utilization should rise from Q4 2025 and drive a dramatic 2026 earnings recovery despite current losses and high depreciation; the market has started to price this since early September.
YC localizes wafer testers at Samsung.
YC has developed front-end wafer testers and is localizing business previously held by Advantest at Samsung, with orders increasing from this year. It also has affiliated exposure to substrates/components. Although valuation was already high, earnings are catching up; by 2026 valuation attractiveness and positive sentiment should improve.
Institutional interest is shifting toward KOSDAQ.
Institutional interest is shifting from KOSPI large caps toward KOSDAQ, as shown by more seminar requests for small/mid-cap names. Government policy guidelines for KOSDAQ are becoming clearer, and although there may be delays, managers are increasingly looking for future gains in KOSDAQ.
This 3PRO TV (삼프로TV) video, published September 16, 2026,
features Kwon Tae-woo
discussing Korean semiconductor equipment/materials/components, DRAM, 005930.KS, 000660.KS, MU, Korean semiconductor back-end/OSAT, Semiconductor test equipment, 086390.KQ, 003160.KS, 039030.KQ, 036540.KQ, YC, KOSDAQ.
9 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Kwon Tae-woo
· Tickers:
Korean semiconductor equipment/materials/components,
DRAM,
005930.KS,
000660.KS,
MU,
Korean semiconductor back-end/OSAT,
Semiconductor test equipment,
086390.KQ,
003160.KS,
039030.KQ,
036540.KQ,
YC,
KOSDAQ
