Foreign investors net sold Samsung Electronics and SK Hynix stocks while concentrating purchases on semiconductor value chain stocks during July 1-16. According to Korea Exchange data, foreign investors net sold 6.67 trillion won of Samsung Electronics and 7.00 trillion won of SK Hynix, ranking them as the top two net-sold stocks. The investment industry analyzes that foreign buying has expanded beyond memory semiconductors to various AI-beneficiary value chain sectors including equipment, testing, power semiconductors, and substrates.
Foreign Investors Net Bought LG Innotek, Hanmi Semiconductor, and DB HiTek
Foreign investors' top net purchases included LG Innotek at 785.2 billion won, Hanmi Semiconductor at 364.1 billion won, Hyundai Motor at 310.8 billion won, DB HiTek at 300.9 billion won, and Leeno Industrial at 244.2 billion won. The investment community interprets this as selective buying based on individual stock fundamentals and growth potential within the semiconductor sector.
Hanmi Semiconductor Positioned as HBM4 Equipment Beneficiary
Hanmi Semiconductor is identified as a representative beneficiary of expanding demand for thermal compression (TC) bonders used in high bandwidth memory (HBM) 4 production required for AI semiconductors. Securities firms forecast the company will record its highest-ever performance this year with revenue of 819.6 billion won and operating profit of 382.2 billion won, as HBM4 TC bonder orders begin reflecting in second quarter revenue and shipments to North American customers expand.
DB HiTek Benefits from AI Server Power Management Chip Demand
DB HiTek is positioned to directly benefit from increasing power management integrated circuit (PMIC) demand driven by AI server expansion. While automotive and industrial semiconductor demand remains solid and AI server PMIC demand grows rapidly, major players including TSMC and Samsung Electronics are reducing 8-inch production capacity and concentrating on 12-inch advanced processes.
Leeno Industrial and LG Innotek Capture AI Testing and Substrate Markets
Leeno Industrial is positioned to benefit from expanding demand for test sockets used in AI semiconductor performance verification. LS Securities raised its second quarter operating profit estimate from 67.9 billion won to 70.2 billion won, reflecting expanded non-memory semiconductor research and development. LG Innotek's flip chip ball grid array (FC-BGA) substrate business for AI servers is emerging as a new growth pillar. Securities firms forecast second quarter operating profit of 244.8 billion won, approximately 22 times higher year-over-year and exceeding market expectations by 36%.
TSMC and ASML Raise Investment Guidance
The global AI investment cycle supporting these companies' growth prospects remains strong. TSMC, the world's largest foundry, announced second quarter results exceeding market expectations and expanded its annual capital expenditure (CAPEX) plan from $56 billion to $60-64 billion, reconfirming strong AI investment momentum. ASML, the world's largest semiconductor equipment company, raised its annual revenue forecast to €43-45 billion based on AI investment expansion. Moon Jun-ho, researcher at Samsung Securities, stated that while recent concerns about AI demand slowdown have emerged, TSMC's CAPEX expansion and ASML's investment plans demonstrate that AI demand remains solid.
FAQ
Which Korean semiconductor stocks did foreign investors buy most during July 1-16?
Foreign investors' top net purchases during July 1-16 were LG Innotek at 785.2 billion won, Hanmi Semiconductor at 364.1 billion won, Hyundai Motor at 310.8 billion won, DB HiTek at 300.9 billion won, and Leeno Industrial at 244.2 billion won, according to Korea Exchange data.
Why are foreign investors buying semiconductor value chain stocks instead of Samsung Electronics and SK Hynix?
The investment industry analyzes that foreign investors are conducting selective buying based on individual stock fundamentals and growth potential, with purchases expanding from memory semiconductors to various AI-beneficiary value chain sectors including equipment, testing, power semiconductors, and substrates.
What evidence supports continued strong AI semiconductor investment?
TSMC expanded its annual CAPEX plan from $56 billion to $60-64 billion after announcing second quarter results exceeding market expectations. ASML raised its annual revenue forecast to €43-45 billion based on AI investment expansion, demonstrating that global AI demand remains solid according to securities analysts.
