Driven by expanded artificial intelligence (AI) investments and growing expectations for increased semiconductor facility investments, funds are rapidly moving toward domestic semiconductor materials, parts, and equipment (SAPE) companies. The center of gravity for the semiconductor rally, previously led by Samsung Electronics and SK Hynix, is spreading to equipment, inspection, and measurement SAPE firms.

According to recent data from Koscom ETF CHECK, as of the 2nd, 7 out of the top 10 products by return among exchange-traded funds (ETFs) listed on the domestic market over the past month were semiconductor SAPE-related products. This is based on figures excluding leveraged and inverse products.

DS Asset Management's "DS KOSDAQ Active" recorded the highest return, surging 32.36%. Major included stocks feature Simtech, Samcns, EO Technics, and Mico. Mirae Asset Management's "TIGER KOSDAQ 150 IT" ranked third with a 29.50% increase, placing Jusung Engineering, Wonik IPS, EO Technics, HPSP, and Simtech among its top holdings.

Shinhan Asset Management's "SOL Semiconductor Front-End Process" and "SOL AI Semiconductor SAPE" also rose 29.01% and 28.34%, respectively. Samsung Asset Management's "KODEX AI Semiconductor Core Equipment" and KB Asset Management's "RISE AI Semiconductor TOP 10" rose 27.20% and 26.49%, securing spots in the upper tier of returns.

Narrowing the scope to just the month of September, the trend was similar. "DS KOSDAQ Active" rose 23.01%, "SOL Semiconductor Front-End Process" rose 22.15%, and "SOL AI Semiconductor SAPE" rose 18.27%.

The strong performance of SAPE stocks was also prominent in individual shares. Leeno Industrial and YC each rose by about 15% over the two days from the 1st to the 2nd. During the same period, Samsung Electronics rose 2.79% before closing flat, while SK Hynix gained 3.66%.

The core background for the strength of SAPE stocks is the expansion of facility investments by global memory companies, including Samsung Electronics and SK Hynix. As AI data center investments increase, demand for general-purpose memory as well as HBM is rising, heightening expectations that memory makers will continue to expand their production capacities.

According to the financial investment industry, the facility investment consensus for Samsung Electronics and SK Hynix this year has been revised upward by 34% and 51%, respectively, compared to the beginning of the year. Micron also announced during its earnings release on the 30th of last month that it plans to invest approximately $25 billion in the first half of fiscal year 2027.

Cheon Gi-hoon, head of the ETF Consulting Team at Shinhan Asset Management, stated, "In the front-end process, expectations for equipment orders following the construction of new production lines and process transitions are the main driver, while in the back-end process, investment expectations stemming from higher HBM layer stacking and expanded application of advanced packaging serve as the key catalysts."

In particular, interest in post-process (back-end) related companies is growing. Because HBM vertically stacks multiple DRAM chips, the packaging and inspection processes are more complex than those of conventional memory, raising the likelihood of increased demand for related equipment.

Park Joon-young, a researcher at Hanwha Investment & Securities, suggested PSK Holdings, YC—which supplies HBM wafer inspection equipment—, and semiconductor test equipment maker Exicon as stocks to watch. Park Systems was also cited as a beneficiary of increased precision measurement demand driven by the advancement of AI semiconductor packaging.

The securities industry places weight on the possibility that the earnings growth trend of SAPE companies will continue for the time being. Kim Rok-ho, a researcher at Hana Securities, evaluated that considering the expansion schedules of domestic and foreign semiconductor companies, "the visibility of top-line growth is very high through 2028."

However, because stock prices have risen rapidly recently, actual earnings are expected to become crucial going forward. Depending on whether order growth translates into actual sales, and whether operating profit margins improve alongside sales expansion, stock price differentiation among individual issues may emerge.

Team leader Cheon noted, "During the Q3 earnings season, key observation points will be whether the increase in orders for SAPE companies leads to actual sales and whether operating profit margins improve," adding, "Securing overseas clients and making the supply of new products visible are also important criteria for judging mid-to-long-term growth potential."

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