[Click eStock] "Samsung Electro-Mechanics, Package Solution Operating Profit Margin Expected to Reach 20% Range This Year"

[Asia Economy Reporter Hwang Yoon-joo] DB Financial Investment maintained a 'Buy' rating and a target price of 270,000 KRW for Samsung Electro-Mechanics on the 21st, stating that the operating profit margin of its package solutions is expected to improve significantly this year.

Researcher Kwon Seong-ryul of DB Financial Investment said, "Samsung Electro-Mechanics' package solutions increased by 33% in 2022 to 2.2101 trillion KRW, and the operating profit margin is expected to improve significantly from the 10% range last year to the 20% range this year."

Researcher Kwon added, "The package substrate market is entering a long-term boom," and "among them, FC-BGA (Flip Chip Ball Grid Array) is expected to account for 29% of sales."

Earlier, there were reports that Samsung Electro-Mechanics is developing FC-BGA to be mounted on Apple's next-generation PC processor M2.

Researcher Kwon evaluated, "Samsung Electro-Mechanics is already supplying FC-BGA to several CPU and GPU companies and has supplied FC-BGA substrates for the previous M1, so great results are expected in the future."

FC-BGA is divided into low-end automotive, AI chips, mid-range chipsets, desktop, high-end high-performance laptops, and servers. Samsung Electro-Mechanics' FC-BGA is already positioned at the top level, suitable for high-performance laptops.

Researcher Kwon added, "They also plan to enter the server market in the future, widening the gap with latecomer companies and reaching the level of Japanese companies such as Ibiden and Shinko."

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