[Breaking News] Samsung Electro-Mechanics turns to positive rebound... Expectations for AI core component FC-BGA

Samsung Electro-Mechanics (009150) is drawing market attention by showing an upward trend during the trading day on the 5th. Despite recent expanded volatility across the overall semiconductor sector, investor sentiment is improving as growth expectations for the AI semiconductor core component business are highlighted once again.

As of the morning of this day, Samsung Electro-Mechanics is trading at 1,733,000 won, up 17,000 won (0.99%) from the previous day, continuing its rebound trend with an influx of buying pressure from the early stages of the market.

Surge in demand from US Big Tech... Mirae Asset "Maintains target price of 2.8 million won"

In the market, Mirae Asset Securities' positive evaluation is drawing attention. Mirae Asset Securities maintained its 'Buy' investment opinion and a target stock price of 2.8 million won for Samsung Electro-Mechanics. The securities industry points to the competitiveness of the FC-BGA (Flip Chip Ball Grid Array) business as a core investment point for Samsung Electro-Mechanics.

FC-BGA is a core substrate used in AI server GPUs and high-performance semiconductor packaging. As global AI semiconductor companies such as Nvidia, AMD, and Broadcom expand production, demand in this sector is rapidly increasing. With the expansion of the generative AI market and the competition for data center investment intensifying, FC-BGA is being evaluated as an essential infrastructure for the AI industry ecosystem beyond a simple component. This is because the importance of advanced substrates grows as the performance of AI accelerators and high-performance GPUs increases.

Expected to benefit from decoupling from China and supply chain reshuffling

As the technological competition between the United States and China prolongs, supply chain diversification has also emerged as a core issue. Global big tech companies are strengthening their moves to disperse their production structures, which are heavily concentrated in China, in order to reduce geopolitical risks. In particular, lowering the dependence on China for the advanced substrate supply chain necessary for AI semiconductor production and securing non-Chinese production bases has become an important strategy.

In this process, Samsung Electro-Mechanics is being evaluated as a leading non-Chinese supplier possessing world-class FC-BGA technology. The industry analyzes that the expansion of non-Chinese procurement demand from North American big tech companies could work in favor of Samsung Electro-Mechanics in the mid-to-long term.

Significance of Nvidia CEO's visit to Korea

The recent visit to Korea by Nvidia CEO Jensen Huang is also attracting market attention. Expectations are growing that the expansion of AI semiconductor demand could lead to growth not only in semiconductor chips but also across the overall packaging and substrate industries. AI servers require a much higher level of high-performance semiconductors and advanced substrates than conventional servers, thereby increasing the strategic value of companies that have secured FC-BGA supply capabilities.

The securities industry believes that if Samsung Electro-Mechanics secures FC-BGA as a new growth axis, following its MLCC and camera module businesses, a re-evaluation of its corporate value will be possible. As two structural changes—the growth of the AI industry and the decoupling from China and reshuffling of supply chains—are occurring simultaneously, the expansion of future orders and improvement in earnings are expected to be the key points to watch.

[※ This article was written for the purpose of providing investment information, and the investment decision and responsibility lie with the investor. AI was partially utilized in the writing process of this article.]