The semiconductor industry has actually been under stress, yet Morgan Stanley sees possibilities in one edge: the bonder market. It’s a market that includes the manufacturing of incorporated circuits and microelectronic parts and is driven in component by the need for electronic devices such as mobile phones and electrical automobiles. “Overall cycle is recovering slowly and equipment vendors with higher advanced packaging exposure should outgrow peers in 2H24 … We remain optimistic about the bonder market due to a combination of cyclical and secular tailwinds,” financial investment financial institution’s experts composed in anAug 22 research study note. “The cyclical recovery that many were expecting in 2H24 is likely pushed out. However, we do expect the cycle to turn in 1H25 and coincide with material growth for [thermo compression] and Hybrid bonders,” they included. Thermo compression (TCB) and crossbreed bonding must include over $1 billion to the back-end overall addressable market from 2025, Morgan Stanley’s experts composed. “We see this new product cycle becoming a meaningful part of revenue for back-end equipment companies from 2025,” on the back of a 96% development in between 2023 and 2026, they included. Stocks to enjoy Here are 3 worldwide devices suppliers that Morgan Stanley is favorable on. BE Semiconductor Industries: The financial investment financial institution explains this Dutch business as a “virtual monopolist in the nascent hybrid bonding technology currently being adopted by multiple large semiconductor manufacturers.” The experts anticipate the business’s profits to proceed expanding in the years in advance. Shares in BESI are noted on the Euronext Amsterdam and profession as an American Depositary Receipt (ADR) in the UNITED STATE Morgan Stanley has a target rate of 180 euros ($ 201.04) on the supply, offering it simply over 50% upside prospective. ASMPT: Morgan Stanley claims this Hong Kong- noted gamer has “technology leadership” in the thermo compression bonder market. The financial institution claims it anticipates 60% profits CAGR (compound yearly development price) from the TCB device in the following 3 years. Shares in ASMPT likewise sell the united state as an ADR. Morgan Stanley has a target rate of 130 Hong Kong bucks ($ 16.67) on the supply, offering it virtually 50% upside prospective. Hanmi Semiconductor: Morgan Stanley claims currently is a “good time to accumulate positions” in the supply many thanks to its “continued dominance” in SK Hynix for HBM3/3E, solid TCB need development overview and share gains at Micron, to name a few points. Shares in Hanmi Semiconductor are noted on the Korea Exchange and are sold the Cambria Emerging Shareholder Yield ETF (2.2% weighting) and Invesco Dorsey Wright Developed Markets Momentum ETF (1.2%). Morgan Stanley has a cost target of 160,000 Korean Won ($ 120.28) on the supply, suggesting simply over 30% prospective advantage.–‘s Michael Bloom added to this record.
