Shares in Hanmi Semiconductor, a South Korean manufacturer of semiconductor equipment, surged by as much as 12.3% in Seoul trading today after the company reported third-quarter earnings that comfortably beat market expectations. The stock closed at 78,400 won, marking its biggest single-day gain in three months.
The company posted an operating profit of 89.2 billion won for the July-September period, up 45% compared with the same quarter last year. Revenue climbed 38% to 142.5 billion won, driven by strong sales of its thermal compression bonding equipment, which is used in advanced chip packaging for artificial intelligence and high-performance computing applications.
Analysts at KB Securities said the results underscore Hanmi's position as a key beneficiary of the booming AI chip market. 'Demand for advanced packaging equipment remains robust as memory manufacturers race to expand capacity for high-bandwidth memory used in AI accelerators,' they noted in a research note.
For UK investors, the rally in Hanmi Semicon shares reflects the broader strength in the global semiconductor supply chain. While the FTSE 100 has limited direct exposure to South Korean chip stocks, several UK-listed technology and industrial companies supply components to the sector. UK pension funds with emerging market allocations may also hold positions in the stock through passive funds tracking the MSCI Korea index.
The semiconductor equipment sector has been volatile this year amid concerns about a potential slowdown in memory chip demand. However, Hanmi's results suggest that demand for AI-related chipmaking tools remains resilient, providing a positive signal for the wider industry.
Source: Hanmi Semiconductor Q3 2024 earnings report, KB Securities research note.