Shares of South Korea’s Samsung Electro-Mechanics and LG Innotek jumped on Friday as investors bet that rising AI server demand and tight supplies of advanced chip packaging parts would lift orders and prices.

Samsung Electro-Mechanics, a South Korean electronic components maker, rose 15.04% to 2.1 million won (US$1,400).

LG Innotek, a South Korean components supplier best known for camera modules and package substrates, climbed 28.57% to 1.5 million won (US$980).

The gains followed Samsung Electro-Mechanics’ May 20 announcement of a roughly 1.5 trillion won (US$1.01 billion) silicon capacitor supply contract with a “large global company.”

Local analysts also said AI data center spending could keep flip-chip ball grid array, or FC-BGA, substrate prices firm.

FC-BGA substrates are used in high-end processors for servers and AI systems and act as the interface between chips and motherboards, routing power and signals.

Mirae Asset Securities recently raised its FC-BGA average selling price forecast for Samsung Electro-Mechanics.

KB Securities also lifted its target price for LG Innotek to 1.6 million won (US$1,100), citing AI-driven substrate shortages.

🔗 Source: The Korea Herald

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