[Edaily Reporter SOYEON KIM ] SamsungElectroMechanics is projected to post its best-ever earnings this year, with operating profit approaching 2 trillion won. As demand for components used in artificial intelligence (AI) servers surges, the company’s earnings outlook is being sharply revised upward. In particular, a steady stream of large-scale orders for multilayer ceramic capacitors (MLCCs) for AI servers—primarily from global Big Tech companies—is driving this improvement in performance.

According to financial information provider FnGuide Inc. on the 3rd, the consensus estimate (average of securities firms’ forecasts) for SamsungElectroMechanics’ annual operating profit this year stands at 1.9446 trillion won. The industry is paying close attention to the possibility that SamsungElectroMechanics could achieve annual operating profit of 2 trillion won for the first time in its history this year. As recently as six months ago, this year’s operating profit forecast stood at around 1.3 trillion won, but it has been rapidly revised upward, driven by growing demand for high-value-added components for AI servers.

With annual revenue also expected to exceed 14.3 trillion won this year, both revenue and operating profit are projected to set new all-time highs.

The surge in demand for components used in AI servers and data centers is cited as the key driver behind this improvement in performance. Demand is rapidly increasing for high-end MLCCs—used in AI accelerators and high-performance data center servers—as well as for flip-chip ball grid array (FC-BGA) substrates for servers.

MLCCs, often referred to as the “rice of the electronics industry,” are components that act as a kind of “dam,” storing electricity and supplying it as needed. They help stabilize the power supply so that semiconductors can operate smoothly. While a typical server contains 2,000 to 3,000 MLCCs, AI accelerator servers equipped with high-performance graphics processing units (GPUs) require up to hundreds of thousands of high-specification MLCCs.

SamsungElectroMechanics announced on the 1st that it had signed a supply contract worth 1.0722 trillion won with a major global company for MLCCs used in AI servers. Since last May, the total value of long-term supply contracts signed for silicon capacitors and MLCCs for AI servers has reached 3.32 trillion won, based on disclosures.

SamsungElectroMechanics’ market share in the AI MLCC market is estimated to be over 40%. As the supply shortage of high-specification MLCCs for AI servers persists, the profitability of SamsungElectroMechanics’ Components Division is expected to improve significantly, including through a 20–30% increase in the selling prices of major high-end products.

FC-BGA is another sector expected to benefit from expanding investment in AI data centers. As investment in AI data centers grows, led by global big tech companies such as AMD, demand for FC-BGA is rising to levels that exceed production capacity. Semiconductors for AI accelerators and high-performance computing (HPC) require higher levels of data processing performance and power supply than general-purpose semiconductors. To connect these components reliably, advanced package substrates—such as large, multi-layer, and highly integrated FC-BGAs—are essential.

SamsungElectroMechanics is expanding its investments to secure a leading position in the market for high-performance package substrates for AI. From this year through 2040, the company plans to invest approximately 8 trillion won in Sejong to strengthen its production facilities and research and development (R&D) capabilities for high-performance package substrates used in AI servers. It also plans to invest approximately 15 trillion won in Busan during the same period to expand its production and R&D hubs for high-performance package substrates for AI data center servers and high-value-added MLCCs.

It is widely believed that the AI supercycle has brought new opportunities to SamsungElectroMechanics. Park Kang-ho, an analyst at DaishinSecurities, said, “Sales of MLCCs and FC-BGAs—high-value-added products for AI servers—are expected to continue growing next year,” adding, “The expansion of the share of high-value-added products is exceeding expectations and leading to upward revisions in earnings forecasts.”