Even this week, when the domestic stock market fluctuated due to the theory of controlling the speed..

Even this week, when the domestic stock market fluctuated due to the theory of controlling the speed of artificial intelligence (AI) investment and the U.S. increase in the benchmark interest rate, a fire column soared in the post-semiconductor process. SFA Semiconductor’s stock price jumped well over 20% as expectations for an increase in outsourcing volume increased due to Samsung Electronics’ expansion of DDR5 production.

According to the Korea Exchange on the 18th, SFA Semiconductor rose 22.87% for four days from KRW 7040 on the 11th to KRW 8650 on the 17th. During the same period, the KOSDAQ index remained virtually flat from 820.64 to 822.18.

In particular, it was in contrast to market conditions earlier in the week. On the 14th, the KOSPI plunged 3.26% and KOSDAQ plunged 1.69% and Samsung Electronics and SK Hynix also fell 4.05% and 6.35%, respectively, but SFA Semiconductor rose 6.96%.

At the center of the strong stock price is the expectation of expanding outsourcing of Samsung Electronics’ DDR5 post-process. SFA Semiconductor is an OSAT company that assembles semiconductors, performs final tests, and modules. As Samsung Electronics shifts its production capacity at its Onyang plant to HBM, the post-process volume required to expand general-purpose memory production is being transferred to external companies, according to the stock market analysis. According to Hana Securities, Samsung Electronics accounted for 77.3% of SFA semiconductor sales in the first half of this year.

The key to improving profitability is the DDR5 Final Test, which will be handled by SFA Semiconductor’s local subsidiary in the Philippines. Hana Securities found that SFA Semiconductor performs all of Samsung Electronics’ DDR5 outsourcing tests. Test production capacity is expected to expand from 10 billion won per month in the fourth quarter of this year to 20 billion won per month at the end of the second quarter of next year. As a result, related sales are also expected to increase 4.8 times from 35.6 billion won last year to 169.2 billion won in 2027.

It is also important to increase the proportion of tests compared to existing module businesses. This is because modules have a high proportion of material costs such as PCB, while tests have a strong processing nature, resulting in a greater increase in profits due to increased utilization rates. Hana Securities is expected to post a record-high performance with sales of 787.8 billion won and operating profit of 90.4 billion won in 2027 after turning into a surplus with operating profit of 11.2 billion won in the fourth quarter of this year. This is 44% more than the previous maximum operating profit in 2022.

The stock market’s eye level has also increased. On the 14th, Korea Investment & Securities raised its target stock price by 20% from 10,000 won to 12,000 won while maintaining its “buy” investment opinion. Compared to the closing price on the 17th, it is about 39% higher.

Nam Chae-min, a researcher at Korea Investment & Securities, said, “The increase in memory packaging to Korean factories is steep,” adding, “In addition to the DDR5 packaging outsourcing that has already been secured, the possibility of additional orders is open, and there is room for raising estimates when secured.” Korea Investment & Securities Co. predicted that its Philippine corporate sales will rise 45.3 percent from this year to 552 billion won in 2027.

However, the performance turnaround is still in the forecast stage. SFA Semiconductor recorded an operating loss of 6.2 billion won in the second quarter, and Hana Securities expected an operating loss of 3.3 billion won annually this year. The key is whether the transfer of DDR5 test facilities and the increase in utilization rate will proceed as planned in the future. As Samsung Electronics has a high proportion of sales, it may be sensitive to changes in outsourcing strategies of customers. Hana Securities pointed out, “The decrease in facility transfer costs in the third quarter and the increase in DDR5 test utilization rate in the fourth quarter are key indicators for confirming changes in profitability.”