AI boom moves down the supply chain, lifting Samsung Electro-Mechanics
Samsung Electro-Mechanics' shares jumped 93.37% between March 31 and April 24 due to its role in producing components for AI infrastructure, including flip-chip ball-grid array substrates and multilayer ceramic capacitors. The company is investing $1.2 billion to expand capacity at its Vietnam plant.
Samsung Electro-Mechanics' shares rose 93.37% between March 31 and April 24, closing at 792,000 won on Monday. The company produces flip-chip ball-grid array substrates and multilayer ceramic capacitors used in AI infrastructure. Nvidia, Google, Amazon, and Apple are building out AI infrastructure, causing structural shortages in these components. Samsung Electro-Mechanics' CEO Chang Duck-hyun reported customer demand for FC-BGA exceeds current capacity by over 50%. The company is investing $1.2 billion to expand capacity at its Vietnam plant. Analysts predict the company could become the global No. 1 in FC-BGA substrates and that its industrial MLCC revenue will more than double to 2 trillion won by 2027.
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