[Featured Stock] Lake Muti Benefits from Semiconductor War Samsung Electronics Solution... Surge in Raw Material Supply Volume

[Asia Economy Reporter Hyunseok Yoo] Lake Materials is showing strength. Securities firms' analysis that the semiconductor and petrochemical business divisions will lead future performance improvements appears to have influenced the stock price.

As of 1:58 PM on the 20th, Lake Materials was trading at 1,550 KRW, up 55 KRW (3.68%) compared to the previous trading day.

Lake Materials is an organometallic materials company. It produces organometallic chemicals such as TMA by combining methane (CH3) organic molecules with aluminum (Al) metal atoms. Based on TMA, it supplies raw materials necessary for product manufacturing to front-end industry companies in LED, solar cells, semiconductors, and petrochemicals. Worldwide, there are four TMA manufacturers: Lake Materials, Grace (USA), Akzo Nobel (USA), and Lanxes (Germany).

Researcher Chansol Park of SK Securities stated, "Lake Materials is estimated to hold the global number one market share for LED materials and TMA materials for high-efficiency solar cells," adding, "For LED materials, the main source of revenue, it supplies more than 70% of the volume used in the Epi growth processes of major companies such as Samsung Electronics, LG Innotek, Seoul Semiconductor, and Epistar (Taiwan)."

He continued, "Going forward, attention should be paid to the growth potential of the semiconductor business," analyzing, "An increase in precursor volumes for CVD/ALD deposition used in high-k dielectric thin films and diffusion barriers for Samsung Electronics and SK Hynix is expected."

Additionally, he explained, "The business division is expected to achieve approximately double the size compared to the previous year," and "The petrochemical business produces metallocene cocatalysts (MAO), metallocene compounds, and supported catalysts."

He said, "Certification evaluations for chemical raw materials are underway with Exxon Mobil (USA), Sinopec (China), Total (France), and SABIC (Saudi Arabia)," and "Once supply begins, it will become a mid- to long-term growth driver."

Meanwhile, Samsung Electronics Vice Chairman Jaeyong Lee conveyed the message that he "considers the Chinese market important" during his business trip to China. Therefore, the semiconductor industry expects that measures conscious of the United States may be announced. The U.S. government, which is promoting semiconductor self-sufficiency, is known to hope that Samsung Electronics will expand its foundry (semiconductor contract manufacturing) plant in Austin, USA.

This content was produced with the assistance of AI translation services.