[Click eStock] "Samsung Electronics to Triple Order Volume with Packaging Expansion"
HBM Market Share Expected to Expand to 48%
Stock Price Likely to Stabilize in the 80,000 Won Range in the Short Term
On the 8th, KB Securities predicted that Samsung Electronics will expand its HBM3 order volume more than threefold through advanced packaging capacity expansion. The investment opinion 'Buy' and the target price of 95,000 KRW were maintained.
Dongwon Kim, a researcher at KB Securities, stated, "Samsung Electronics will more than double its production capacity of 2.5D advanced packaging (iCube8), which enables turnkey supply of HBM, next year."
Researcher Kim added, "Especially, HBM packaging demand is expected to exceed supply until 2025, so major customers such as Nvidia and AMD, who mostly rely on competitors' packaging (CoWoS) supply, will diversify their suppliers by establishing an HBM turnkey supply system with Samsung Electronics starting next year."
He analyzed, "The expansion of Samsung Electronics' advanced packaging production capacity is expected to be a key factor in tripling the HBM3 order volume next year."
Samsung Electronics is the only company that has established a turnkey production system for HBM from design and production to 2.5D advanced packaging. Accordingly, it is estimated that final approval of HBM turnkey products from major customers will be completed in the first quarter of next year. In the future, if Samsung Electronics supplies HBM and 2.5D packaging turnkey, the order volume is expected to increase significantly compared to supplying HBM single products.
Researcher Kim said, "From the perspective of major customers such as Nvidia and AMD, concerns about HBM supply stability can be alleviated, and diversification of advanced packaging suppliers becomes possible," and estimated, "Next year, Samsung Electronics' HBM market share will expand to 48% as turnkey production becomes a strength."
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Researcher Kim forecasted, "Next year, Samsung Electronics will expand its advanced packaging production capacity to about 70% of competitors' level," and added, "Therefore, Samsung Electronics' stock price is expected to stabilize in the 80,000 KRW range in the short term as market share expands due to the HBM turnkey effect."
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