The team of analysts at DBS Group Research have kept their “buy” call target price (TP) of $1.04 on manufacturer Grand Venture Technology (GVT) after it won a so-called TSV (through-silicon VIA) project from a leading wafer fabrication equipment company.
TSV technology, used in semiconductor manufacturing, allows for high-density stacking and direct vertical connections. It is applied as a foundational technology for next-generation chips that powers functions such as artificial intelligence (AI), internet of things (IoT) and advanced computing.
Citing a report by Yole Intelligence, DBS notes that demand for high end advanced packaging remains robust and is seen to grow at a compound annual growth rate (CAGR) of 37% to US$28 billion by FY2029, supporting demand for TSVs which are foundational for next-generation chips.
DBS expects GVT’s front-end contributions to gain momentum and strength, in-line with their expectations.
“We believe that the TSV project is a significant initiative with a new front-end customer who holds over 50% of the market share in deposition and etch for advanced 3D high-bandwidth memory (HBM) stacking, as well as a monopoly for certain systems across memory customers for TSV formation.”
Beyond TSV, GVT is also developing front-end solutions in areas such as atomic layer deposition, metrology, and inspection which should augment front-end contributions once it enters mass production.
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DBS expects GVT’s portfolio of front-end products to enter meaningful mass production in FY2025, boosting its revenue in its semiconductor segment to $100 million and $131 million in FY2025 and FY2026 respectively, a 30% y-o-y growth in both years.
However, as the TSV project was already flagged earlier, DBS is keeping its forecasts for now.
“Nonetheless, this is an affirmation on management’s ability to deliver and should provide a positive catalyst to share price,” says DBS.
If GVT can gain further wallet share from backend customers, that will be another catalyst for the stock, which has gained nearly 60% in the past six months.
As at 4.07pm, shares in Grand Venture Technology are trading flat 90 cents.
