Corporate Logo(source: samsungsem.com)
Samsung Electro-Mechanics (009150) shares have been rising sharply in recent months, driven by expectations that both of its core divisions — Components and Package Solutions — are entering a boom cycle on the back of rapidly increasing server-related revenue. Brokerages continue to name Samsung Electro-Mechanics as their top pick among large-cap electric and electronics stocks, reflecting a broadly optimistic outlook.
According to the Korea Exchange on November 27, Samsung Electro-Mechanics was trading at 253,000 won as of 9:22 a.m., down 4,000 won (1.56%) from the previous session.
Despite today’s pause, the stock has been on a clear upward trajectory this year. On the previous day, it gained 15,500 won (6.42%) to close at 257,000 won, touching an intraday record high of 258,000 won. As of the previous session, the stock had surged 107.59% year-to-date.
Strong results are expected for the fourth quarter following solid performance in Q3. According to financial data provider FnGuide, the consensus forecast for Samsung Electro-Mechanics’ Q4 revenue and operating profit stands at 2.8183 trillion won and 219.2 billion won, respectively — up 13.08% and 90.61% year-on-year. Operating profit is expected to roughly double.
Profitability in the Components Division continues to improve. Demand for multilayer ceramic capacitors (MLCCs), the division’s key revenue driver, remains strong, easing inventory concerns even during the usual year-end off-season. MLCCs act as “dams” that store and release electricity at controlled levels. In the high-performance MLCC segment essential for AI servers, only a handful of global manufacturers — including Samsung Electro-Mechanics — are capable of supplying the required specifications, a factor expected to further enhance competitiveness.
MLCC demand is rising rapidly as the spread of artificial intelligence leads to expansion in the application-specific integrated circuit (ASIC) market. ASIC chips have high power consumption and volatile current loads, requiring increased MLCC usage for power and current stability. In GPUs, MLCC counts have historically increased roughly tenfold with each generational shift — from around 2,000 units to 20,000 units, and then to more than 300,000 units — and analysts expect a similar pattern for ASICs.
Jaeunji Cho, an analyst at DB Financial Investment, said, “ASIC-driven volume growth is accelerating faster than expected, tightening supply conditions and raising the possibility of a shortage. In that scenario, unit prices for server-use MLCCs could rise, prompting upward revisions to earnings estimates.”
Sowon Kim, an analyst at Kiwoom Securities, noted, “The Components Division’s operating margin is projected at 12% for Q4, far above the three-year average of 4% for the same period. Historically, MLCC boom cycles have typically begun with a fourth-quarter earnings inflection.”
MLCC pricing is expected to enter a meaningful uptrend next year as utilization rates and inventory levels remain elevated. Some Chinese and Taiwanese MLCC manufacturers have reportedly begun signaling price increases.
The Package Solutions Division, which focuses on semiconductor substrates, is also considered to be entering a boom period. Utilization for FC-BGA — high-density substrate connecting advanced chips to the motherboard — reached 72% in Q3, rising steadily from 63% in Q1 and 68% in Q2.
Rising utilization reflects strengthening FC-BGA demand. Samsung Electro-Mechanics is reported to have secured four additional server and networking FC-BGA clients recently. Analysts expect its FC-BGA capacity to reach full utilization by around 2027. Cho added, “After operating at 65% this year, the division is expected to move to full utilization in 2027, contributing meaningfully to company-wide earnings growth.”
Park Hyung-woo, an analyst at SK Securities, commented, “MLCCs and substrates have so far been in a utilization-driven recovery phase, but as long as the company avoids premature capacity expansion, the market could shift to a price-upcycle. Rising prices directly translate to a profitability leap. As Korea’s leading AI component manufacturer, Samsung Electro-Mechanics deserves valuation differentiation from traditional component suppliers.”
*[KOSPI] Samsung Electro-Mechanics(009150) engages in component business producing passive components(MLCC, chip inductors, chip resistors), optical communication solution business producing camera modules/communication modules, and package solution business producing semiconductor package substrates. The market capitalization is 19.158 trillion won (as of November 26, 2025, closing price).
Corporate Logo(source: samsungsem.com)
Samsung Electro-Mechanics (009150) shares have been rising sharply in recent months, driven by expectations that both of its core divisions — Components and Package Solutions — are entering a boom cycle on the back of rapidly increasing server-related revenue. Brokerages continue to name Samsung Electro-Mechanics as their top pick among large-cap electric and electronics stocks, reflecting a broadly optimistic outlook.
According to the Korea Exchange on November 27, Samsung Electro-Mechanics was trading at 253,000 won as of 9:22 a.m., down 4,000 won (1.56%) from the previous session.
Despite today’s pause, the stock has been on a clear upward trajectory this year. On the previous day, it gained 15,500 won (6.42%) to close at 257,000 won, touching an intraday record high of 258,000 won. As of the previous session, the stock had surged 107.59% year-to-date.
Strong results are expected for the fourth quarter following solid performance in Q3. According to financial data provider FnGuide, the consensus forecast for Samsung Electro-Mechanics’ Q4 revenue and operating profit stands at 2.8183 trillion won and 219.2 billion won, respectively — up 13.08% and 90.61% year-on-year. Operating profit is expected to roughly double.
Profitability in the Components Division continues to improve. Demand for multilayer ceramic capacitors (MLCCs), the division’s key revenue driver, remains strong, easing inventory concerns even during the usual year-end off-season. MLCCs act as “dams” that store and release electricity at controlled levels. In the high-performance MLCC segment essential for AI servers, only a handful of global manufacturers — including Samsung Electro-Mechanics — are capable of supplying the required specifications, a factor expected to further enhance competitiveness.
MLCC demand is rising rapidly as the spread of artificial intelligence leads to expansion in the application-specific integrated circuit (ASIC) market. ASIC chips have high power consumption and volatile current loads, requiring increased MLCC usage for power and current stability. In GPUs, MLCC counts have historically increased roughly tenfold with each generational shift — from around 2,000 units to 20,000 units, and then to more than 300,000 units — and analysts expect a similar pattern for ASICs.
Jaeunji Cho, an analyst at DB Financial Investment, said, “ASIC-driven volume growth is accelerating faster than expected, tightening supply conditions and raising the possibility of a shortage. In that scenario, unit prices for server-use MLCCs could rise, prompting upward revisions to earnings estimates.”
Sowon Kim, an analyst at Kiwoom Securities, noted, “The Components Division’s operating margin is projected at 12% for Q4, far above the three-year average of 4% for the same period. Historically, MLCC boom cycles have typically begun with a fourth-quarter earnings inflection.”
MLCC pricing is expected to enter a meaningful uptrend next year as utilization rates and inventory levels remain elevated. Some Chinese and Taiwanese MLCC manufacturers have reportedly begun signaling price increases.
The Package Solutions Division, which focuses on semiconductor substrates, is also considered to be entering a boom period. Utilization for FC-BGA — high-density substrate connecting advanced chips to the motherboard — reached 72% in Q3, rising steadily from 63% in Q1 and 68% in Q2.
Rising utilization reflects strengthening FC-BGA demand. Samsung Electro-Mechanics is reported to have secured four additional server and networking FC-BGA clients recently. Analysts expect its FC-BGA capacity to reach full utilization by around 2027. Cho added, “After operating at 65% this year, the division is expected to move to full utilization in 2027, contributing meaningfully to company-wide earnings growth.”
Park Hyung-woo, an analyst at SK Securities, commented, “MLCCs and substrates have so far been in a utilization-driven recovery phase, but as long as the company avoids premature capacity expansion, the market could shift to a price-upcycle. Rising prices directly translate to a profitability leap. As Korea’s leading AI component manufacturer, Samsung Electro-Mechanics deserves valuation differentiation from traditional component suppliers.”
*[KOSPI] Samsung Electro-Mechanics(009150) engages in component business producing passive components(MLCC, chip inductors, chip resistors), optical communication solution business producing camera modules/communication modules, and package solution business producing semiconductor package substrates. The market capitalization is 19.158 trillion won (as of November 26, 2025, closing price).