[Edaily Reporter Kim Kyung-eun] #TFE is emerging as the biggest beneficiary of the surge in semiconductor testing demand driven by the proliferation of artificial intelligence (AI) servers. With the launch of its new factory in Hwaseong and new revenue from next-generation memory modules (SOCAMM), the company is expected to see significant growth in earnings this year.

Baek Jun-ki, an analyst at NH Investment & Securities, stated in a report on the 10th, "Testing complexity is rising significantly due to the proliferation of AI, High Bandwidth Memory (HBM), and next-generation packaging," adding, "A re-rating is expected for the company, which is a test solution provider that integrates the supply of sockets, boards, and replacement kits (COK)." In terms of valuation, he assessed that "the company offers high appeal due to its undervaluation relative to peer companies."

TFE’s key growth driver this year is its new factory in Hwaseong. Equipment installation is scheduled to be completed by the end of June, and the facility is expected to begin contributing to revenue in earnest starting in August. The core of the new factory lies in the expansion of high-value-added socket production lines, with the structure designed to add new lines alongside the existing ones. Production capacity is expected to expand to approximately twice the current level.

Researcher Baek is particularly focusing on SOCAMM. SOCAMM is a Low Power Double Data Rate (LPDDR)-based memory module applied to global companies’ next-generation AI server platforms. TFE is currently supplying SOCAMM test boards and sockets, and sales began in mid-May. He explained that entry into new markets has become tangible as the SOCAMM supplied to major clients has been adopted in Company A’s servers.

He analyzed, "As LPDDR becomes modularized, the number of test processes is increasing, and the importance of test solutions is growing even further as verification while the Central Processing Unit (CPU) is installed has become necessary." The assessment is that SOCAMM will form a new test market following HBM.