Nepes Arch Surges 14% on Hopes for AI Semiconductor Backend Processing

Nepes Arch's stock price surged by more than 14% on anticipation of demand for AI semiconductor backend processing. As of the closing price on the 15th, it recorded 57,700 won, an increase of 7,200 won (14.26%) from the previous day. Nepes Arch's growth potential and relatively low valuation appeal stimulated investor buying sentiment.

Industry analysis suggests that while overall sector expectations remain valid, supply and demand are differentiating based on individual companies' growth trajectories and valuations.

Korea Investment & Securities has provided guidance that Nepes Arch will achieve an average annual revenue growth of 39% by 2030. The proposed growth drivers are the automotive and AI sectors. The current mobile-centric business structure is expected to diversify into three pillars: mobile, automotive, and AI. Nepes Arch's advanced packaging capabilities and its affiliate's non-memory testing expertise were jointly cited.

The relatively low valuation burden was also identified as a factor driving the stock price increase. According to Korea Investment & Securities, as of the closing price on June 12, 2026, Nepes Arch's 12-month forward Price-to-Earnings Ratio (PER) was 29.4x.

OSAT (Outsourced Semiconductor Assembly and Test) companies specialize in backend processing, undertaking packaging and testing services commissioned by semiconductor manufacturers. The importance of related companies is growing amid increased demand for system semiconductors and AI chips, along with the trend toward supply chain diversification. Nepes Arch's strong stock performance is interpreted as a result of the company's potential for gains being highlighted again within these industry trends.