LG Electronics Inc. (066570.KS) Stock Rises 2.52% Following Rumors of AI Memory Chip Equipment Initiatives

LG Electronics Inc. experienced a 2.52% stock increase, closing at 77,200 won, due to reports of its strategic foray into AI chip equipment, specifically targeting hybrid bonding tools essential for high-bandwidth memory (HBM) used in AI processors. Local media suggests LG aims for mass production by 2028, indicating a significant shift towards advanced semiconductor manufacturing. This technology allows for denser 3D memory configurations, critical for training large AI models. Competitors like Hanmi Semiconductor and Samsung Electronics’ Semes saw stock declines, reflecting concerns about LG’s potential impact on the niche market. The global hybrid bonding sector is projected to grow rapidly, with anticipated market values between $700 million and $756 million by 2031. This move marks LG’s broader strategy to diversify its portfolio beyond consumer electronics, backed by a $4 billion R&D investment in 2023. Despite high entry barriers, the shift indicates LG’s ambition to innovate in a competitive landscape.

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