Introduction to this report:
The AI+ digital economy has spawned demand for high computing power. The company fully covers advanced packaging solutions and accelerates the iteration of TCB devices, which is expected to benefit deeply.
Summary:
Investment advice: In 2008, the company was affected by poor industry demand, which led to a decline in performance. Driven by the gradual recovery of semiconductors and the demand for superimposed AI, the company is expected to return to the pace of growth and give the company an “gain” rating.
The advanced packaging equipment product portfolio is complete, and the solution is fully covered. ASMPT's portfolio of advanced packaging solutions covers a variety of chip packaging processes. Equipment types include deposition solutions, laser cutting and grooving, Fan-out crystallization, thermocompression crystallization (TCB), hybrid bonding crystallization, and inspection, testing, and packaging. Currently, the main technical points in the field of advanced packaging are Bump, bonding, and TSV channels, and the company has comprehensive solutions.
Affected by sluggish downstream demand in '23, the company's performance declined sharply. Driven by demand such as AI, it is expected to gradually recover in '24. As the semiconductor industry has been in a downward cycle in recent years, overall market demand has declined, and the trend of inventory removal has been pressurized, and the profit margins of the overall semiconductor industry chain have been squeezed. The semiconductor advanced packaging industry picked up in the fourth quarter of '23, orders increased, and the company adjusted its product structure, leading to a month-on-month increase in gross margin in the fourth quarter. Demand for AI and the like continued to rise in 24 years, which is expected to drive further expansion of production lines such as CoWOS and drive an increase in demand for the company's equipment.
The AI+ digital economy has spawned demand for high computing power. The company fully covers advanced packaging solutions and accelerates the iteration of TCB devices, which is expected to benefit deeply. 1) Industry: Benefiting from the demands of AI and the digital economy, global demand for large computing power chips such as GPUs, MPUs, and AI chips has increased dramatically.
The global GPU market is expected to reach $185.31 billion in 2027, with a CAGR of 33% for 21-27. 2) Company: The company covers equipment such as TCB, hybrid bonding, and FAN-out. In particular, TCB is more accurate and efficient in bonding thinner substrates, and second-generation products have received a large number of orders from OSAT and logic chip customers.
Risk warning. Demand recovery fell short of expectations; market competition intensified.