According to recent reports, South Korea printed circuit board manufacturer, Daeduck (KOSPI:353200) is now supplying high-performance MLB boards for satellite equipment to major global aerospace companies. The aerospace market has gained attention following successful test launches by SpaceX, led by Elon Musk, positioning it as a rapidly expanding sector.

A Daeduck spokesperson confirmed that the company has been generating revenue from the aerospace sector for several years. Earlier this year, Daeduck secured aerospace manufacturing certifications, which has led to increased orders in the field. The company is also intensifying efforts to attract large global clients.

Daeduck specializes in the production of MLB substrates, commonly used in memory chips, network devices, and inspection equipment. MLB substrates are high-density circuit boards, typically with 18 or more layers, designed to support applications that require high data processing, such as AI, servers, autonomous vehicles, and 5G technology.

On October 20th, SpaceX successfully completed its sixth Starship test launch, further raising expectations for the commercialization of the global space industry. With the aerospace sector now becoming a focal point for growth, the industry's profile continues to rise, especially with policy support from the U.S. government. SpaceX's valuation, initially pegged at $210 billion in June, has recently been estimated at around $350 billion.

Daeduck remains optimistic about the aerospace sector, although its current aerospace-related revenue is still small. The company plans to increase sales by securing additional customers in the sector.

In addition to aerospace, Daeduck is preparing for significant growth in the AI accelerator market. The company has completed testing of MLB substrates for AMD's AI accelerator products and is awaiting final customer approval. AMD is a new client for Daeduck, and this partnership is expected to drive substantial revenue growth.

Industry experts anticipate that Daeduck's MLB orders for AMD will begin to materialize as early as December. Kiwoom Securities analyst Kim So-won predicts that Daeduck will expand its MLB supply to AI accelerators starting in 2024. Based on its experience with HDI (High-Density Interconnects), Daeduck is expected to successfully mass-produce both OAM and UBB substrates.

Hana Securities analyst Kim Rok-ho noted that Daeduck will directly benefit from AI market growth through its AI accelerator substrates, boosting both its financial performance and its valuation. Kim forecasts that Daeduck's 2024 revenue will increase by 10% to 989.7 billion KRW, with operating profit soaring 208% to 72.1 billion KRW.

With the surge in demand for MLB substrates, Daeduck's annual production capacity is projected to grow from 200 billion KRW to 300 billion KRW in the near future.

Securities analyst Park Kang-ho of Daishin Securities further noted that Daeduck is expected to secure additional orders for AI-related MLB substrates from global clients and expand into data centers. Park forecasts that MLB sales for AI applications will contribute 40 to 50 billion KRW to Daeduck's revenue in 2024, increasing total MLB revenue by 47% year-on-year to exceed 180 billion KRW.