1. What Happened at SFA Semiconductor?

SFA Semiconductor reported consolidated revenue of KRW 151.4 billion (down 35.2% YoY) and an operating loss of KRW 12.7 billion in H1 2025. Capacity utilization plummeted to 23% in Q2, exacerbating fixed cost burdens.

2. Why the Decline?

The downturn stems from a confluence of factors: a general semiconductor industry slump, reduced investments from key clients, and intensified competition. SFA’s reliance on memory semiconductors further amplified its vulnerability to market fluctuations.

3. What’s Next for SFA Semiconductor?

While the short-term outlook appears challenging, SFA Semiconductor continues to invest in R&D, focusing on future growth drivers like Small PKG and flip-chip technologies. Potential interest rate cuts and other macroeconomic improvements offer a glimmer of hope. Long-term growth opportunities may arise from increased demand for high-performance semiconductors driven by AI, IoT, and other advanced industries.

4. What Should Investors Do?

Investors considering SFA Semiconductor should closely monitor R&D outcomes, new order acquisitions, semiconductor market recovery, and macroeconomic shifts. We currently maintain a ‘Neutral’ rating, advising investors to observe performance improvements and industry recovery before making investment decisions.