[Edaily Reporter Shin Ha-yeon] On the 5th, Yuanta Securities assessed that investors should pay attention to three key developments regarding #YESTI: the entry of high-pressure annealing (HPA) equipment into the memory market, expanding demand for Neocon equipment, and the potential resolution of patent dispute risks. The firm did not provide a specific investment opinion or target price.

Kwon Myung-jun, an analyst at Yuanta Securities, stated, “High-pressure annealing equipment is now needed not only in foundries but also in the memory sector,” adding, “While some memory companies are already using it, the market is still in its early stages, so the company is highly likely to play a major role as a key player once it secures customers.”

High-pressure annealing equipment is used to repair interface defects (dangling bonds) generated during the semiconductor manufacturing process by utilizing hydrogen or deuterium. The report explains that the need for high-pressure annealing methods is growing compared to existing equipment in 3-nanometer and smaller GAA processes, as well as in 10-nanometer-class DRAM processes.

Researcher Kwon explained, “There are only two companies worldwide, including Yesti, that sell high-pressure annealing equipment,” adding, “Yesti holds a technological advantage over its competitors in terms of pressure (30 bar) and throughput (125 wafers).”

He continued, “The company has secured orders for high-pressure annealing equipment from overseas memory clients and plans to deliver them within the year, while also conducting R&D to sign additional supply contracts with top-tier global memory companies.”

Neocon equipment was also cited as a new growth driver. Since the start of this year, Yesti has announced supply contracts worth 7.6 billion won in January, 8.4 billion won in March, and 8.3 billion won in May, followed by the announcement yesterday of a 22.8 billion won contract for semiconductor manufacturing equipment. Most of this Neocon equipment is destined for Samsung Electronics and is scheduled for delivery within the year.

Analyst Kwon noted, “Neocon equipment controls the internal humidity of the EFEM to below 10%, thereby improving yield,” adding, “Concerns about oxidation resulting from miniaturization are no longer limited to foundries but are expanding into memory processes.”

He predicted, “With DRAM recently entering the 10-nanometer class and the full-scale adoption of EUV processes, demand for Neocon equipment is highly likely to take off in memory processes as well,” adding, “Sales to memory customers are expected to gain momentum starting in the second half of the year.”

He also highlighted the potential resolution of patent dispute risks as a key point to watch. Analyst Kwon analyzed, “A ruling on the matter is expected in June,” adding, “If Yesti’s claims are upheld, the company could resolve the most contentious patent dispute, thereby mitigating the negative impact of patent issues on its stock price.”

Additionally, he identified high-pressure oxidation (HPO) equipment—a next-generation technology—as a potential growth driver. He explained, “It is known that wafer warping occurs in DRAM 1c and 1d generations and in NAND flash with 300 layers or more, increasing the need for HPO adoption.” He added, “We believe that developing this equipment could significantly improve the company’s valuation, and a concrete roadmap is expected to be presented within the year.”