South Korean Semiconductor Stocks To Watch As Seoul Expands Chip Spending - simplywall.st

As South Korea prepares a record-breaking 800 trillion won budget and discusses a new future response fund tied to semiconductor tax receipts, the country's semiconductor industry is drawing renewed i... Read original →

South Korean semiconductor equipment firms are entering a policy-driven growth phase, fueled by an 800 trillion won budget aimed at expanding chipmaking capacity. Companies like Wonik IPS, TES, and PSK benefit from government support for deposition and etching tools, especially in 3D packaging and advanced nodes. However, elevated P/E ratios and reliance on external capital raise liquidity concerns. As global supply chains reconfigure, these firms may shift production to Taiwan or Hong Kong, China, to mitigate geopolitical risks. Over the next 12–24 months, extended investment cycles and rising market concentration could intensify competition, with leading players likely to pursue vertical integration for resilience.