The Real Change the Semiconductor Industry Is Hiding | Han Dong-hee, Research Fellow feat. Kim Jang-yeol [Chipssul]

Summary

Han Dong-hee from SK Securities discusses the structural transformation of the memory semiconductor industry driven by AI demand, long-term supply agreements (LTA), and a shift from PBR to PER valuation. He reiterates bullish price targets for SK Hynix (2M won) and Samsung Electronics (400K won), citing earnings visibility and HBM leadership. Risks include power bottlenecks, macro tightening, and Chinese competition, which are not seen as near-term threats.

• Memory cycle is structurally longer and different from past cycles due to AI and LTA.
• LTA creates a dual market, improving pricing stability and earnings visibility for Korean memory makers.
• HBM and LPDDR demand are rising with AI inference and CPU upgrades (Vera).
• SK Hynix is the HBM leader and first to receive revaluation; target 2M won.
• Samsung Electronics is catching up in HBM and benefits from valuation re-rating; target 400K won.
• Chinese memory competitors are expanding but face equipment sanctions and inefficiency, not a near-term threat.
• Power supply for data centers and rising interest rates are key risks to monitor.
• Upcoming IPOs of AI companies like OpenAI could further validate the investment thesis.