[Featured Stock] Samsung Electro-Mechanics Surges Over 6% on News of 1 Trillion KRW Semiconductor Substrate Equipment Investment

[Asia Economy Reporter Park Ji-hwan] On the 24th, Samsung Electro-Mechanics' stock price showed a strong gain of over 6% following news of a trillion-won scale investment.

As of 9:58 AM that day, Samsung Electro-Mechanics was trading at 196,500 KRW, up 6.22% from the previous trading day.

The recent stock price surge is attributed to the announcement made the previous day by Samsung Electro-Mechanics regarding a 1 trillion KRW scale investment. Samsung Electro-Mechanics stated that it will invest a total of 850 million USD (approximately 1.102 trillion KRW) to expand its factory in Vietnam in response to increasing demand for high-performance semiconductor package substrates in areas such as 5th generation (5G) mobile communications and artificial intelligence (AI). The investment will be used for production facilities of semiconductor flip-chip embedded substrates (FCBGA) and infrastructure development. The investment amount will be executed in phases until 2023.

Kim Ji-san, a researcher at Kiwoom Securities, said, "This investment is expected to lead to the advancement of FCBGA products and diversification of customers," adding, "Once fully operational from 2023, the expansion effect is expected to exceed 500 billion KRW in annual sales."

This content was produced with the assistance of AI translation services.