Samsung Electro-Mechanics is experiencing strong trading in the early session. The surge in buying interest is attributed to the announcement of a supply contract for multilayer ceramic capacitors (MLCC) with a major global IT company.
As of 9:50 a.m. on June 30, shares of Samsung Electro-Mechanics rose 4.42% (90,000 won) to 2,128,000 won, according to the Korea Exchange.
Earlier in the day, the company disclosed that it had signed a supply contract for MLCCs with a global IT giant. The contract is valued at approximately 453.99 billion won, which represents 4.0% of its consolidated revenue from the previous year. The contract period runs from January 1, 2027, to December 31, 2027.
However, details regarding the contracting party and the specifics of the agreement have been withheld for business confidentiality reasons. The company plans to reassess the disclosure of this information after the contract is fulfilled.
MLCCs are essential electronic components that reliably store and supply electrical current, widely used in various IT devices, including smartphones, artificial intelligence (AI) servers, data centers, and automotive electronics. With the recent expansion of the AI server and high-performance computing (HPC) markets, the demand for high-value MLCCs has been steadily increasing.
Market analysts believe this contract reaffirms Samsung Electro-Mechanics' competitive edge in AI-related components.
* This article has been translated by AI.
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