Investment Rating - The report maintains a positive outlook on Resonac, indicating strong growth prospects and confidence in demand from key clients [2][3]. Core Insights - Resonac's management expressed strong confidence in the demand for HDD substrates due to robust needs from Western Digital and Seagate, leading to price increases [2][4]. - The company is focused on expanding its semiconductor materials business and is considering the spin-off of its graphite electrode business [3]. - AI-related materials are expected to constitute approximately 30% of the backend materials by FY2026, with strong demand in CCL, NCF, and HDD segments [3]. Summary by Relevant Sections Company Overview - Resonac is a leading chemical manufacturer, dominating the graphite electrode market and being a key player in semiconductor materials, including silicon carbide wafers and packaging materials [9]. Revenue Breakdown - Revenue by product: Chemicals (37.1%), Semiconductor/Electronic Materials (32.0%), Mobility (15.5%), Innovative Materials (7.0%) [10]. - Revenue by region: Americas (8.3%), Asia (84.1%), Europe (5.8%), Middle East and Africa (1.8%) [10]. Stock Information - Stock price as of March 3, 2026: 12,540.0 JPY - Market capitalization: 14.7 billion USD - 12-month high/low: 12,540.0 JPY / 2,250.0 JPY [12].

Core Viewpoint - LG Chem has developed advanced liquid PID (Photo Imageable Dielectric) materials for semiconductor packaging, targeting the artificial intelligence and high-performance semiconductor markets, highlighting the increasing importance of PID in high-precision circuits [2][4]. Group 1: Product Features - The liquid PID material offers high resolution, stable curing at low temperatures, low shrinkage, and low absorption rates, enhancing process stability [2]. - The new PID is free from PFAS, NMP, and toluene, aligning with environmental regulations [2]. - LG Chem has also developed a film-type PID to address issues of uniformity on large substrates, which include maintaining consistent thickness and graphic fidelity, high strength and elasticity to reduce cracking during thermal cycles, low moisture absorption for long-term reliability, and compatibility with existing processes [3]. Group 2: Expansion in Semiconductor Packaging - LG Chem is expanding its production and R&D scale in key backend materials for advanced semiconductor packaging, which includes products such as Copper-Clad Laminate (CCL), Die Attach Film (DAF), Non-Conductive Film (NCF), and Build-Up Film (BUF) [3].