Global Semiconductors_ High Bandwidth LLW DRAM Expected to Emerge for Mobile

Summary of the Conference Call Transcript Industry Overview - The discussion centers around the Global Semiconductors industry, specifically focusing on Low Latency Wide I/O (LLW) DRAM technology and its implications for mobile applications [9][10][21]. Key Points and Arguments 1. Emergence of LLW DRAM: - LLW DRAM is expected to emerge as a high bandwidth solution for mobile applications in the second half of 2025 [9][10]. - It is viewed as a mobile version of High Bandwidth Memory (HBM), designed to enhance data processing speed and efficiency [10][13]. 2. Technological Advancements: - LLW DRAM utilizes Vertical Wire Fan-Out (VFO) technology, which improves data transfer speed by minimizing wire length and reducing power consumption [11][12]. - SK Hynix has reported a 4.6 times reduction in wire length and a 4.9% improvement in power efficiency compared to conventional wiring methods [12]. 3. Performance Improvements: - When LLW DRAM is placed close to processors, it can enhance power efficiency by approximately 70% compared to general DRAMs [10]. - The technology aims to increase input/output (I/O) counts, delivering performance comparable to HBM while being suitable for mobile devices [10][13]. 4. Market Adoption: - The adoption of LLW DRAM is anticipated to accelerate starting from the second half of 2025, primarily for mobile applications and as a potential replacement for SRAMs in processors [9][10][13]. 5. Investment Recommendations: - Analysts recommend a Buy rating for both SK Hynix and Samsung Electronics, anticipating strong demand for LLW DRAM driven by mobile applications and AI memory needs [13][39][40]. Risks and Challenges 1. Market Risks: - Potential risks include delays in HBM shipment approvals, weaker-than-expected PC sales, and aggressive competition in the memory semiconductor market [39][41]. - A downturn in DRAM demand and a collapse in global consumption could negatively impact SK Hynix's stock performance [41]. 2. Currency Risks: - Any significant appreciation of the Korean won could adversely affect the earnings of Samsung Electronics [39]. Additional Insights - The report emphasizes the importance of technological innovation in maintaining competitive advantages within the semiconductor industry, particularly as demand for high-performance memory solutions continues to grow [9][10][13]. - The analysis includes a detailed valuation methodology for both Samsung Electronics and SK Hynix, referencing global peers and assigning fair-value multiples based on their respective divisions [38][40]. This summary encapsulates the critical insights from the conference call, highlighting the advancements in LLW DRAM technology, market expectations, and associated risks within the semiconductor industry.