Leeno Industrial, which is based in Busan, manufactures parts for semiconductor-testing equipment. The company has over 1,000 customers globally, including Samsung Electronics, SK Hynix, and Nvidia. In December 2022, Leeno announced plans to double its production capacity by acquiring a large industrial facility in Busan. The company's stock surge is driven by optimism that its equipment will be used to manufacture chips for AI.
Key takeaways:
- Shares of Leeno Industrial, a South Korean semiconductor company, have surged by more than 70% since November due to investor excitement over artificial intelligence, making the company's founder and CEO, Lee Chae-yoon, a billionaire.
- Leeno Industrial, which is based in Busan, manufactures parts for semiconductor-testing equipment and has over 1,020 customers worldwide, including Samsung Electronics, SK Hynix, and Nvidia.
- Despite a fall in revenue and earnings in 2023 due to weak demand for smartphones and personal computers, investors believe the AI boom, particularly Nvidia’s graphics processing unit chips, will boost Leeno’s earnings.
- In December 2022, Leeno announced it had acquired a large industrial facility in Busan to expand its production capacity, in response to rising demand for semiconductor-testing equipment driven by technological trends like AI, Internet of Things, AR, VR and autonomous driving.