South Korea Technology: Semiconductors - Memory: Takeaways from Korea memory expert call

First-page research excerpt

Equity Research

29 July 2026 | 11:39PM KST

South Korea Technology: Semiconductors - Memory: Takeaways from

Korea memory expert call

We hosted a Korea Memory Expert Webinar on July 28. Key takeaways include: 1)

DRAM pricing to continue solid growth throughout this year, significant upside for

HBM next year, 2) LTA to provide strong binding power, 3) Chinese memory suppliers

limited threat in the near-to-mid term, 4) Stronger capacity addition however limited

bit growth, and 5) Expects more of a gradual adoption of hybrid bonding. We

reiterate our Buy rating on SEC.

n

DRAM pricing to continue solid growth throughout this year, significant

upside for HBM next year: The expert expects conventional DRAM pricing could

see solid double-digit% sequential growth in 3Q26 which is in line with recent

strong spot pricing rally. The expert also sees possibility of another

double-digit% sequential growth in 4Q26 on the back of ongoing supply

shortage. For next year HBM pricing, the expert sees the possibility that pricing

could potentially double due to rising conventional DRAM pricing. We expect SEC

HBM pricing to rise 87% yoy next year which is above sell-side consensus

(Bloomberg) estimate of 52% yoy.

n

LTA to provide strong binding power: The expert mentioned that LTA includes

various terms to enhance binding power such as sizable prepayment,

take-or-pay clause, and cancellation penalty. The expert also mentioned more

than half of server DRAM is covered by LTA and expects LTA coverage ratio to

increase going forward.

n

Chinese memory suppliers limited threat in the near-to-mid term: The expert

mentioned that although Chinese suppliers are active in capacity expansion,

expects less likelihood of Chinese suppliers to be a visible threat to leading

players as there’s still a sizable gap in production yield, technology level, and

product reliability.

n

Stronger capacity addition however limited bit growth: The expert expects

the capacity addition pace for this year to be stronger than its historical level,

however expects bit growth to be below historical average due to the high HBM

trade ratio.

n

Expects more of a gradual adoption of hybrid bonding: While the expert

…