S.Korea's DB Hitek hits 25-year high on bullish outlook

DB HiTek

22/12/2020 04:23

** Shares of South Korea's DB Hitek  000990.KS  rise as much
as 10.8% to hit their highest since 1995
    ** Analysts say they expect see a takeoff in performance of
the mid-sized contract chip manufacturer
    ** The performance is likely to be driven by a price hike in
foundry services as supply of wafer capacities tightens, with 
production capacities across the industry remaining fully
loaded, according to research provider Trendforce 
    ** A global shortage of chips, partly due to
under-investment in 8-inch chip manufacturing plants, as well as
a faster-than-expected pick up in chip demand 5G phones, laptops
and cars, is forcing firms to scramble to secure production
capacity from contract chip manufacturers  urn:newsml:reuters.com:*:nL1N2IX10E
    ** DB Hitek's 8-inch chips business has been running at 98%
capacity as of the current quarter and has seen a rise in the
average selling price, with orders secured for most of 2021,
analysts said 
    ** The broader KOSPI market  .KS11  was trading down 0.4% as
of 0327 GMT


 (Reporting by Joyce Lee)
 ((jungyoon.lee@tr.com; +82 2 6936 1467;))