Serenity is optimistic about LPKF’s prospects before a surge in volume, and expects its long-term market value to exceed $3 billion to $5 billion.

BlockBeats News, June 22 — Earlier today, Serenity said that when discussing the semiconductor equipment and advanced packaging industrial chain, the long-term valuation range for LPKF Laser & Electronics may be between $3 billion and $5 billion, and that it is in a critical stage just before potential mass production ramp-up.

Serenity said that LPKF has a high customer penetration rate in the field of process equipment related to glass substrates, and that it accounts for about 70% of the target market share in specific technology routes (such as glass core substrates and advanced packaging processes), making it one of the key equipment suppliers in the industrial chain.

When comparing the industry structure, the user drew analogies between LPKF and equipment makers such as Aehr Test Systems and AIXTRON SE, believing that such “small equipment niche companies” are typically constrained by the size of the total addressable market (TAM), and that their market capitalization is difficult to expand and sustain above $20 billion over the long term unless they have multiple technology “bottleneck” advantages comparable to ASML.

The commentary also noted that in areas such as advanced semiconductor packaging and optoelectronic interconnects (CPO), the equipment supply chain is currently in a window for transitioning from the verification stage to the mass production stage, but the market remains highly divided in its views on such assets, and the valuation path is highly dependent on the pace of future capacity ramp-up and customer volume rollout.