SEMI’s forecast report notes that global sales of total semiconductor manufacturing equipment by original equipment manufacturers (OEMs) are expected to reach a record US$109 billion ($143.8 billion) in 2024. This is expected to continue into 2025, reaching US$128 billion driven by both the front and back-end segments.
RHB Bank Singapore analyst Alfie Yeo notes that UMS Holdings (SGX:558
) offers a play on the recovery in front-end semiconductor sector recovery in an unrated Nov 4 report.
“We expect the sector to recover this year and towards 2025,” Yeo writes. “Global semiconductor capacity is expected to increase by 6% y-o-y in 2024 and 7% y-o-y in 2025, according to Semiconductor Equipment and Materials International’s (SEMI) world fabrication (fab) forecast report. This makes UMS’s key customer and, in turn, UMS itself key beneficiaries of the semiconductor recovery trend.”
