"Dreamtech, expected to begin full-scale mass production in 4Q26"

[Edaily Reporter Kwon Oh Seok] Independent research firm ValueFinder said on September 22 that ‘Dreamtech’ has completed memory module qualification testing for two of six global Big Tech companies and is expected to begin full-scale mass production in 4Q26 once the expansion of its India plant is completed in September. ValueFinder noted that the memory module business is emerging as a new growth driver for the Company, expanding its business beyond the supply of IT component modules to Samsung Electronics.

Founded in 1998 and listed on the KOSPI market in 2019, Dreamtech is an EMS and ODM provider of IT component modules for Samsung Electronics. As a key vendor to Samsung Electronics‘ MX Business, the Company supplies products including integrated smartphone bottom modules and fingerprint sensor modules, and maintains the No. 1 position in the IT Solution segment with a market share in the mid-30% range. The Company operates three business segments: IMC (IT & Mobile Communications), BHC (Biometrics, Healthcare & Convergence), and CCM (Compact Camera Module). As of 1H26, IMC accounted for 47.3% of revenue, followed by CCM at 36.9% and BHC at 15.8%.

The Company entered the memory module business as India was selected as a new production base in Samsung Electronics’ efforts to diversify its memory module manufacturing footprint. After being selected as a vendor for Samsung Electronics‘ DS Business in January last year, Dreamtech sequentially obtained approvals for server RDIMMs, PC UDIMMs, and laptop SoDIMMs, and began mass production in November last year. For the Company’s own qualification process targeting six North American global Big Tech companies, Dreamtech adopted a strategy of first supplying Indian and Chinese server companies that did not require additional qualification testing, thereby building a quality track record before pursuing approvals sequentially. The Company is currently understood to have completed qualification testing for two of the six companies.

Amid the global memory shortage, both end customers and Samsung Electronics have faced a growing need to secure production capacity earlier than initially planned, leading the expansion of Dreamtech‘s India plant, originally scheduled for 2027, to be brought forward to September this year. Revenue from the Company’s Indian subsidiary increased 49.4% from KRW 9.1bn in 1Q26 to KRW 13.6bn in 2Q26, indicating a visible ramp-up in production volume. ValueFinder estimates that the Company‘s memory module revenue will exceed at least KRW 100bn this year and expand to approximately KRW 400bn next year, when the additional capacity from the plant expansion is expected to reach full utilization.

The Company is also taking an active approach to shareholder returns. In March, Dreamtech amended its Articles of Incorporation to formally require treasury shares to be retired within one year. In May, the Company retired approximately KRW 25.1bn worth of treasury shares, the largest treasury share retirement since its listing. In July, it entered into an additional KRW 5.0bn treasury share acquisition trust agreement, of which 89.8% had been executed as of August 26.

ValueFinder analyst Lee Choong-hun said, “Memory modules for servers, PCs, and laptops are standardized products that can be manufactured repeatedly, which should result in higher manufacturing efficiency and profitability compared with the Company’s existing smartphone components.”

He added, “2H26 should mark a period of re-rating for the Company, as the expansion of the India plant in September coincides with additional approvals from end customers.”