TOWATOWA Corporation
📋 Auros is positioned for higher upside due to involvement in SK Hynix/Samsung HBM4 hybrid bonding roadmaps with ~$280m revenue; Towa is a monopolistic compounder in the same space
Auros is positioned for higher upside due to involvement in SK Hynix/Samsung HBM4 hybrid bonding roadmaps with ~$280m revenue; Towa is a monopolistic compounder in the same space.
Evidence & details
- +Auros part of SK Hynix/Samsung HBM4 hybrid bonding related roadmaps
- +Auros at ~$280m revenue
- +Towa described as monopolistic compounder
- ⚡HBM4 hybrid bonding adoption
- ⚡AI-driven demand for advanced packaging
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@2victorspoils I liked Auros for higher upside since they’re part of SK Hynix/Samsung Hbm4 hybrid bonding related roadmaps at ~$280mz Over in Japan, Towa was a bit of a more boring but monopolistic compounder. As the ones I’ve posted about so far. There’s a lot more, I’ll shar…
Thesis: Auros is positioned for higher upside due to involvement in SK Hynix/Samsung HBM4 hybrid bonding roadmaps with ~$280m revenue; Towa is a monopolistic compounder in the same space.
Towa is a functional monopoly that is flat despite HBM4 capex spend, making it a good trade for upcoming earnings on May 10.
source ↗TOWA remains a critical chokepoint in the semiconductor packaging process, even with the advent of hybrid bonding and HBM5, making it a must-have stock.
source ↗Hyperscaler capex increases, particularly from SK Hynix, Micron, and Samsung, will flow upstream to TOWA. MSSCORP is more nuanced as CPO is not yet volume ramped.
source ↗VIAV and FORM earnings beat strongly, indicating robust demand for memory/test/yield equipment, which is bullish for upstream inspection and test companies like ONTO, CAMT, TOWA, KEYS, and potentially downstream optics players.
source ↗TOWA is a largely forgotten beneficiary of the new HBM4 memory cycle, with a monopoly in compression molding processes, set to be re-rated due to capex hikes from memory makers.
source ↗Potential 80%-100% re-rating for TOWA as it is a sleeper beneficiary of HBM4 spend from major memory makers, though cyclical.
source ↗Towa is a steady compounder benefiting from unavoidable capex inflows from memory makers due to its monopoly status, especially during memory cycles.
source ↗Towa's 1.6T optical less mass production has started and ASIC test segment is growing; management likely sandbagging earnings.
source ↗Auros is positioned for higher upside due to involvement in SK Hynix/Samsung HBM4 hybrid bonding roadmaps with ~$280m revenue; Towa is a monopolistic compounder in the same space.
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