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Electronic parts firms enjoy rosy outlook on AI supercycle | Collector
Electronic parts firms enjoy rosy outlook on AI supercycle
The Korea Times

Electronic parts firms enjoy rosy outlook on AI supercycle

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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