South Korean semiconductor firms face mixed outlooks amid currency shifts and AI demand

South Korean semiconductor companies are facing contrasting financial pressures due to exchange rate fluctuations and rising demand for high-bandwidth memory (HBM) and advanced packaging technologies.

As the Korean Won strengthens against the US Dollar, the operating profit forecasts for industry leaders Samsung Electronics and SK Hynix have been revised downward. The combined annual operating profit consensus for the two firms has decreased by approximately 21 trillion won over the last two months. This trend is attributed to the fact that high export ratios mean a stronger Won reduces the Won-denominated value of dollar-based revenues.

Conversely, specialized equipment providers like PSK Holdings are seeing positive momentum. Analysts at Hana Securities have raised their target price for PSK Holdings, citing expected growth in demand for HBM and CoWoS (Chip on Wafer on Substrate) packaging equipment. The expansion of packaging lines by TSMC and major OSAT providers is expected to drive significant revenue growth for equipment suppliers through 2027.

Despite the currency headwinds, the long-term outlook for the memory sector remains supported by the structural growth of the artificial intelligence industry, which continues to drive demand for HBM4, DDR5, and enterprise SSDs.