The Korea Times
Electronic parts makers are emerging as key beneficiaries of the chip supercycle driven by a global surge in artificial intelligence (AI), with Samsung Electro-Mechanics and LG Innotek presenting an upbeat outlook after posting solid first-quarter earnings. On Monday, IBK Securities, Eugene Investment and Meritz Securities raised their target price for Samsung Electro-Mechanics to 1.05 million won ($713), 1.03 million and 1.02 million won, respectively, each setting target prices above 1 million won for the first time. The brokerages each attributed the increased target prices to the company’s robust sales from Flip Chip Ball Grid Array (FC-BGA), a substrate for advanced semiconductors, and Multilayer Ceramic Capacitors (MLCCs), a component that stabilizes power for semiconductors and other electric devices. “As demands are far exceeding the company’s production capacity, discussions are underway with customers to sign long-term supply agreements for both MLCC and FC-BGA substrates,” Eugene Investment analyst Lee Ju-hyung said. Long-term supply agreements in the semiconductor mar
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