[Edaily Reporter Shin Ha-yeon ] SFA Semicon Co., Ltd(036540)is trading higher in early trading on expectations that it will benefit from SamsungElectronics’ expansion of DDR5 back-end process outsourcing.

According to MP Doctor on the 1st, as of 9:08 a.m., SFA Semicon Co., Ltd is trading at 6,000 won, up 5.26% from the previous trading day.

This rally is believed to have been driven by forecasts from the securities industry that SFA Semicon Co., Ltd. will benefit from an increase in outsourced DDR5 back-end processing volume as SamsungElectronics reorganizes its Onyang facility to secure high-bandwidth memory (HBM) back-end processing lines.

Lee Dong-ju, an analyst at SKSecurities, stated in a report, “As a major client has recently begun in earnest the realignment of production lines at its Onyang facility to secure HBM back-end production lines, we have started to see an increase in outsourced DDR5 back-end production volumes,” adding, “The company, which has secured sufficient space for everything from packaging to testing, is expected to benefit the most.”

In particular, dedicated packaging equipment from the Onyang facility has begun to be transferred to Plant 1 in Korea, and testing equipment is also being gradually relocated to the company’s Philippine subsidiary. SKSecurities estimated that, starting with mass production in the fourth quarter, the increase in DDR5-related revenue next year will exceed 120 billion won.

Expectations for an earnings turnaround are also growing. SKSecurities projected that after consecutive losses through the third quarter, earnings will improve starting in the fourth quarter, with operating profit turning positive to 78.5 billion won in 2027.

The analyst noted, “Expansion of the Philippine subsidiary’s test production capacity (CAPA) is also underway,” adding, “The company is expected to maintain a favorable position in securing additional outsourcing orders from SamsungElectronics.”