The best textbook for studying semiconductors has been released.
(Yeombli Yeom Seung-hwan)

The world's easiest introduction to the semiconductor market has been published for ordinary investors who are investing in Samsung Electronics but know nothing about semiconductors.
The author of this book, analyst Kyungmin Kim, has been working as a semiconductor analyst for over 10 years.
In 2021, he was selected as the best semiconductor analyst by media outlets, ranking first in Hankyung Business and second in Maeil Business Newspaper.
This book is written by an author who has been active in the Yeouido field for a long time. It contains the author's market insight based on his long-term market observation, including what the key variables in the semiconductor market are and how stock prices move depending on issues.


Unlike existing books, this book is different in that it discloses how to work as a semiconductor analyst, how to view stock prices, how to study companies, and various research methods, making it accessible to general investors.
We selected 18 of the most frequently asked questions from ordinary investors and revealed our market learning know-how by answering them.
Through this book, you'll learn techniques for predicting trends in various industries and stock price movements of key players, not just in the semiconductor industry but also in the stock market.

Securities analysts are office workers.
It's no exaggeration to say that I work all day, sitting in the office and staring at a monitor.
And analysts write every day.
From reports for individual investors to those for institutional investors, I regularly read and write reports on the current market trends and how investors should act.

--- p.5

When asked to explain fabless and foundries, I start with foundries.
Semiconductors are like fine cuisine that requires numerous complex processes to be created, and the foundry is like the kitchen where these dishes are actually made.

--- p.45

A fabless company is a semiconductor company that does not have a kitchen or a kitchenette.
It's like a chef sitting at his desk, diligently writing down by hand how to prepare a gourmet dish.
The chef doesn't have a separate kitchen, but his main job is developing recipes.

--- p.47

If you understand the semiconductor industry in terms of four combinations: memory, non-memory, design, and manufacturing, you can approach it more easily.
So, when you come across a new semiconductor company in the news, it's helpful to understand the news by simply checking whether the company's main products fall into the memory or non-memory categories, and whether the company is responsible for design or manufacturing.

--- p.49

While it's worth studying in detail the materials, components, and equipment processes where localization is actively underway, I'd like to say that you don't necessarily need to know anything about areas where localization isn't taking place.
This is because it is difficult to find relevant beneficiary stocks in the Korean stock market, and because it does not lead to investment ideas, studying semiconductor processes can be time-consuming and end without any specific conclusions.

--- p.67

If the non-memory semiconductor performance of TSMC and Samsung Electronics were as different as Jeju Island and Mara Island, there's no need for us to pay attention to Samsung Electronics, which is Mara Island, right? But this is where the interesting story begins.
Recently, expectations have emerged that Samsung Electronics may be able to narrow the gap with TSMC, and this expectation has spurred a rise in Samsung Electronics' stock price.
Due to this expectation, Samsung Electronics' stock price rose to 96,800 won as of January 2021.

--- p.77

The job of a semiconductor analyst is a collection of countless habits.
Checking DRAM prices every day, checking semiconductor export data every ten days, checking Micron's performance every quarter—all of these things come together to create daily outlooks and forecasts.
--- p.82

What type of investor would ASML be a good fit for? I recommend ASML to those with long-term rather than short-term investment goals, and to those who want to buy semiconductor stocks for their parents or children and hold onto them for the future.
Because ASML's monopoly is expected to last for a long time.

--- p.89

Export restrictions or high tariffs are traditional methods of resolving trade disputes.
A new way to combat trade disputes is to make mergers and acquisitions between companies more difficult.
In particular, when an American semiconductor company acquires or merges with another American company, it must obtain approval from other countries, including China.
In some cases, there are concerns that regulators will not even review, let alone approve.
If this happens, the stock price of the company pursuing a merger or acquisition will inevitably fall.

--- p.119

It's like digging a well in the desert, which is becoming increasingly difficult and requires expensive equipment.
When it is easy to dig a well, the price of well water can easily fall, but when it becomes increasingly difficult to dig a well, well water becomes scarce and the price does not fall easily.
Rather, we should see that prices are likely to continue to rise.
Since the supply of well water is constant, if prices rise, sales and operating profits generated from each well will inevitably grow in the medium to long term. The DRAM memory semiconductor industry is also expected to exhibit similar trends in the medium to long term.

--- p.143

As electric and autonomous vehicles continue to gain popularity in the forward-looking industries, the shortage of automotive semiconductors is likely to persist.
In this situation, the key to resolving the supply shortage is not traditional automotive semiconductor suppliers like NXP or Infineon, but rather non-memory foundry suppliers like TSMC and UMC that are newly increasing production of automotive semiconductors.

--- p.153

It is said that self-driving cars need up to 28 cameras.
In fact, it is a level that is difficult to imagine at this point.
If that happens, the share of automotive semiconductors in Nvidia's sales will continue to increase.
This is also the case with Samsung Electronics.
In summary, Samsung Electronics' ability to narrow its market capitalization gap with other leading semiconductor companies will depend on how much it can increase its exposure to the automotive semiconductor market and how much automotive semiconductor sales it secures.

--- p.161

Search for “Reasons for SK Hynix stock price decline” in the Google or Naver search bar.
A quick search of a few articles or blogs will quickly reveal two or three key reasons.
Conversely, you can also search for “reasons for SK Hynix stock price increase” or “what will happen if SK Hynix stock price increases”.
Just knowing two or three reasons why the price falls and rises like this will put your mind at ease.

--- p.203

An analyst's expertise is hardly derived from omnipotent abilities.
Because this is my job and I've been observing stock price movements for a relatively long time, I'm just a bit faster at connecting cause and effect.
If the exchange rate has a significant impact on stock prices at a certain time, it is just that the speed of judging that the stock price direction will change when the won-dollar exchange rate falls below a certain level is a bit faster.

--- p.204

To broaden your semiconductor-related reading comprehension and literacy, I'd like to suggest that simply utilizing Naver and Google searches based on some basic knowledge and quick thinking is sufficient.

--- p.214

Following the US-China trade dispute, the coronavirus pandemic, and the Russia-Ukraine war, the semiconductor industry is undergoing deglobalization and relocation, moving away from its reliance on specific regional supply chains.
In May 2020, I published a semiconductor industry analysis titled "Relocation and Unripe Bananas." It argued that companies that had previously received little attention in the Korean semiconductor industry would benefit from increased facility investment by global semiconductor companies.
Although nearly two years have passed since the report was published, I believe the investment ideas in it remain valid.

--- p.221