Shares of KLA Corp rose over 5% midday after Samsung and SK Hynix announced plans for four chipmaking plants costing 800 trillion won ($516 billion), boosting expected equipment orders. Analysts now forecast the wafer fabrication equipment market at $250 billion by 2028 and have raised price targets on ASML and peers.
Samsung Electronics Co and SK Hynix Inc revealed plans to build two new chip fabrication plants each in South Korea, representing a combined investment of 800 trillion won ($516 billion). This announcement propelled shares of KLA Corp more than 5% higher in New York, marking one of the strongest two-day gains in the Philadelphia Semiconductor Index.
Analysts from Susquehanna and UBS have raised their wafer fabrication equipment market outlook to $250 billion by 2028, while bumping up price targets on leading equipment suppliers including ASML, Applied Materials, and KLA. The firms cite strengthening order backlogs and extended visibility beyond 12 months as key drivers heading into the upcoming July earnings season.
