Semiconductor-related stocks in the spotlight What stocks to look out for in 2024

The business climate in the semiconductor industry has been characterized by short-term boom and bust cycles, but even in the Corona Disaster, growth has been so high that automobile manufacturers have had to reduce production and shut down operations due to a shortage of semiconductors.

The 2024 problem is being discussed, as new plants around the world will be operational around 2024, but demand for semiconductors is high from a medium- to long-term perspective, as the world moves towards a digital society, including the use of IoT, AI, 5G and big data.

The demand for semiconductors is high from a medium- to long-term perspective, as the demand for semiconductors is expected to reach ¥100 trillion over the next 10 years, so if semiconductor-related stocks were to sell off significantly due to the 2024 problem, it would be an opportune time to buy at a push.

The data in the table on this page are current as of 10/11/2023.

・Lasertec (6920) +63.41 (6 months)

Boasts an overwhelmingly high share of the global semiconductor inspection equipment market.

EUV mask inspection systems for advanced semiconductors are the mainstay of the company's business.

The company has a monopoly on EUV light source products. Mask inspection systems, the mainstay of the company's business, are brisk, with a huge backlog of orders. SiC wafer inspection systems also continue to grow as customers are keen to invest.

Continued growth in operating profit, consecutive highest net profit and dividend increases - the company continues to fly off the shelves.

However, the company's high growth potential has already led to a high P/E ratio of 54.82x for FY2024, so it is best to wait for an adjustment (a decline in the share price) before buying.

▶▶Reasons for attention

The company has a high market share in semiconductor inspection equipment. The company's share price is expected to grow with the expansion of the semiconductor market.

Tokyo Electron (8035) +41.97% (6 months)

Has the top domestic market share in the fields of semiconductor and FPD production equipment.

TEL handles a wide range of products related to semiconductor manufacturing, including various types of film forming equipment such as thermal processing film forming equipment, coaters/developers, etching equipment, cleaning equipment, test systems and wafer bonding equipment.

Semiconductor production equipment is firm in China, mainly for mature-generation in-vehicle and industrial machinery applications, but demand for PCs and smartphones is weak, and the first half of the year has been a struggle for logic equipment.

Production adjustments by memory customers have also taken a toll, but the share price continues to rise.

▶▶ Reasons for attention.

Demand is expected to fall by around 10% year-on-year in 2023, but demand is expected to recover in 2024 due to demand for semiconductors.

● Advantest (6857) +48.18% (6 months)

Provides support to the global semiconductor supply chain by establishing bases around the world.

Has a high market share in memory testers for DRAM, flash memory, etc., and testers for system LSIs.

The company's non-memory testers struggled mainly in 1H due to weak demand for consumer products such as smartphones and PCs, and although Q1 FY03/2024 progress against full-year forecasts is low at 21.1% of sales and 13.6% of operating profit, the company has indicated that sales levels are expected to increase each quarter.

We await an adjustment at an expected PER of 56.9x and actual PBR of 8.5x, which is overvalued.

▶▶ Reasons for attention.

If the company's strategy of tapping into demand in new markets, such as power semiconductors, pays off, it could see further development.

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