The semiconductor industry’s resurgence is sparking optimism among market observers, and Grand Venture Technology (GVT) is emerging as a standout beneficiary. With strategic expansions, key contract wins, and diversification into high-growth areas, the Singapore-listed manufacturer appears poised for a stellar 2025.
A Key Player in the Semiconductor Upswing
Originally specializing in back-end semiconductor manufacturing—covering wire bonding and chip testing—GVT has expanded into the lucrative front-end segment. This move, including services like metrology and etching, has solidified its position in the value chain.
For the nine months ended Sept 30, 2024, semiconductor revenue accounted for 53.2% of GVT’s total revenue, or $59.5 million out of $111.9 million. This growth was driven by new contracts and increased wallet share among existing clients.
On Dec 19, 2024, GVT announced a major contract to supply components for next-generation thermal compression bonding (TCB) equipment to a leading global semiconductor assembly and packaging manufacturer. This equipment is integral to advanced semiconductor packaging for chips used in AI accelerators, data centers, high-bandwidth memory (HBM), and graphics cards.
Citing research from Yole Intelligence, GVT projects the advanced packaging market to grow at an 11% CAGR from 2023 to 2029, reaching US$69.5 billion ($94.6 billion).
Analysts See a Bright Semiconductor Future
In a Jan 6 report, Amanda Tan and Ling Lee Keng of DBS Group Research outlined the impact of generative AI and other growth drivers. They anticipate semiconductor revenue to surge by 30% to $100.4 million in FY2025 and $130.6 million in FY2026.
They also highlighted the potential of GVT’s entry into the wafer fab equipment market, which is “eight times larger” than the back-end semiconductor market, positioning GVT for significant future gains.
Diversification Strengthens Resilience
Beyond semiconductors, GVT is actively diversifying into electronics, aerospace, medical, and life sciences.
In 9MFY2024, the electronics, aerospace, and medical segment contributed $36.1 million (32.3% of total revenue), a 32.8% increase year-on-year. The life sciences segment generated $16.2 million (14.5% of total revenue), up 3.4% year-on-year.
The company’s diversification strategy includes cutting-edge ventures like advanced ceramics. On Jan 13, GVT partnered with the Agency for Science, Technology and Research (A*Star) to develop a manufacturing platform for high-value advanced ceramics, tapping into a niche but growing market.
Acquisitions have also bolstered this strategy. In March 2024, GVT acquired ACP Metal Finishing for $17 million, adding surface treatment capabilities for semiconductor and aerospace components, enhancing its cross-segment offerings.
Strong Market Performance and Analyst Confidence
Market sentiment reflects GVT’s growth potential. Its share price surged 32.03% over the past month, closing at 84.5 cents on Jan 16. DBS analysts have raised their target price to $1.04 from 70 cents, citing robust growth in semiconductors, healthy aerospace momentum, and resilience in life sciences and medical segments.
Future Growth Opportunities
Looking ahead, GVT’s potential secondary listing on Malaysia’s Bursa could further enhance its profile. With Bursa recording 55 new listings in 2024, GVT’s addition would inject fresh momentum into the market.
As the global semiconductor industry regains its upward trajectory, GVT’s strategic positioning in high-growth markets and diversification efforts make it a compelling player to watch in 2025 and beyond.
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