[Click eStock] Increasing Importance of DPS Role in Samjeon Foundry Division... KoAsia 'Interest'

[Asia Economy Reporter Hyunseok Yoo] Hana Financial Investment analyzed on the 7th that regarding KoAsia, the role of Design Solution Partner (DSP) is essential for the expansion of Samsung Electronics' foundry division, thus requiring attention. No investment opinion or target price was provided.

KoAsia operates in system semiconductors, IT component distribution, LED, camera modules, and audio components businesses. KoAsia's system semiconductor business is a DSP business. DSP is recognized as a partner of foundry clients or design asset collaborators and mainly delivers results through a turnkey method.

Researcher Kyungmin Kim of Hana Financial Investment stated, "GUC (Global Unichip), which has established itself as a design solution partner of TSMC in Taiwan, recorded sales of 484 million USD (527 billion KRW) last year," adding, "KoAsia's system semiconductor sales began only last year, amounting to 5.3 billion KRW as of Q3 2020," and "to expect substantial profits, sales are estimated to need to exceed several tens of billions of KRW."

He continued, "For KoAsia to achieve sales in the thousands of billions of KRW like GUC, it must increase turnkey projects that play a leading role rather than limited service projects."

He emphasized that since the role of DSP becomes more important for Samsung Electronics' foundry division to increase its client base, attention should be paid to KoAsia.

He said, "The role of DSP is essential in the process of Samsung Electronics' foundry division expanding fabless clients like TSMC," and added, "I hope investors interested in Samsung Electronics' system semiconductor business will also take an interest in companies like KoAsia."

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