Samsung Electro-Mechanics

삼성전기 / 삼성전기주식회사

A South Korean electronic-components manufacturer supplying multilayer ceramic capacitors for AI servers and FC-BGA package substrates for AI accelerators and data-center processors.

KRX: 009150 (Ordinary shares)
KRX: 009155 (Preferred shares)
Profile as of September 13, 2026
#27 in the AsiaAI Tech Index
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Samsung Electro-Mechanics is becoming more relevant to AI infrastructure through its power-management MLCCs and processor FC-BGA substrates. The central tension is its challenger status in the highest-end FC-BGA market against Japanese and Taiwanese incumbents. Its planned glass-core substrates offer a route to future differentiation, but commercial contribution is not expected before late 2027.

Key figures

Revenue FY2025: Korean won 11.3145 trillion
Revenue growth FY2025: 10.0%
Operating margin FY2025: 8.1%
Net income FY2025: Korean won 731.0 billion
R&D spend FY2025: Korean won 787.2 billion (7.0% of revenue)
Capital expenditure: Not disclosed
Market capitalization: Not disclosed
Component Solution revenue FY2025: Korean won 5.199 trillion
Package Solution revenue FY2025: Korean won 2.302 trillion
Optical Solution revenue FY2025: Korean won 3.814 trillion
Estimated AI-server MLCC share 2026: About 40%

Overview

Samsung Electro-Mechanics was founded in 1973 as Samsung Sanyo Parts and operates as a listed electronic-components manufacturer within the Samsung Group. It combines ceramic-material capability, miniaturization, and substrate design to produce passive components and semiconductor packages. Its business is divided into Component Solution, Package Solution, and Optical Solution. The company supplies high-capacitance, high-reliability multilayer ceramic capacitors used in servers, power circuits, and automotive electronics. It also manufactures FC-BGA package substrates for high-performance computing servers, networking equipment, and mobile application processors. While it operates independently, its position within the Samsung ecosystem provides scale and manufacturing coordination. It serves a global customer base, positioning itself as a critical supplier of the physical components required to build and power advanced electronic systems.

The AI angle

The company benefits from AI infrastructure demand through its Component Solution and Package Solution businesses. AI servers require significantly more MLCCs and higher-performance power components per system than traditional servers, driving demand for its high-capacitance server-grade parts. These components are essential for managing power stability in dense, high-power AI computing environments. Simultaneously, chipmakers and server-platform customers purchase its large, high-layer-count FC-BGA substrates for AI accelerators and data-center processors. The company publicly identifies AMD as a customer for high-performance-computing server FC-BGA substrates, having signed a supply agreement and begun mass production. It plans to raise the share of high-value FC-BGA products for servers, AI, automotive, and networks above 50% by 2026. The AI link is direct in components and substrates but remains partial at the group level, as its Optical Solution division is mainly exposed to smartphone and automotive-camera demand rather than data-center AI.

Technology and moat

The company's technical position relies on its ability to manufacture server-grade MLCCs and advanced FC-BGA substrates with the electrical performance, thermal tolerance, flatness, and reliability required by large chips. Its hardest capabilities to copy include materials-process integration, yield learning in large FC-BGA boards, ceramic formulation, and automated production know-how. It is a later entrant to the highest-end FC-BGA segment compared to Japanese incumbents like Ibiden and Shinko Electric Industries, which retain strong incumbency in high-end substrate supply. To differentiate and capture future AI-packaging demand, it formed the GlaSSEM joint venture with Dongwoo Fine-Chem to develop glass-core substrates. Glass cores can reduce warpage and circuit distortion relative to conventional organic cores, but commercial operations are not expected until the second half of 2027, meaning they do not yet represent an established commercial advantage.

Five-pillar assessment

Scale and market position: A major global supplier of MLCCs and package substrates, though it remains a challenger to Japanese and Taiwanese incumbents in the highest-end FC-BGA market.
Technology and R&D: Capabilities in ceramic formulation, miniaturization, and large-substrate production, with a planned move into glass-core substrates through its GlaSSEM joint venture.
Supply-chain centrality: Supplies AMD with HPC-server FC-BGA substrates and partners with Sumitomo Chemical for glass-core development, while relying on specialized material and equipment suppliers.
Financial momentum: Revenue and operating profit grew in 2025, supported by rising AI-server MLCC and accelerator FC-BGA demand, with Package Solution showing strong growth in early 2026.
Governance and quality: An independent listed company within the Samsung Group with a separated CEO and board chair, transparent Korean IFRS reporting, and substantial Samsung Electronics ownership.

Supply chain and relationships

Samsung Electro-Mechanics depends on suppliers of copper-clad laminate, Ajinomoto build-up film, precision drilling and plating equipment, passive-component powders, and semiconductor-grade chemicals. Specific suppliers of key production materials are not disclosed. On the customer side, it supplies AMD with HPC-server FC-BGA substrates, though other customer names and revenue concentrations are generally not disclosed. Its MLCC volume competes with Murata Manufacturing, TDK, Taiyo Yuden, Yageo, Kyocera AVX, and Walsin Technology. In the FC-BGA market, it competes with Ibiden, Shinko Electric Industries, Unimicron Technology, Kinsus, Nan Ya PCB, AT&S, and LG Innotek. Qualified customers retain alternative suppliers in both MLCCs and substrates, limiting sole-source control.

Customers

AMDHPC server FC-BGA substrates

Partners

Sumitomo ChemicalGlass-core substrate joint venture
Dongwoo Fine-ChemGlaSSEM joint venture partner

Competitors

Murata ManufacturingInferredMLCCs
TDKInferredMLCCs
Taiyo YudenInferredMLCCs
YageoInferredMLCCs
IbidenInferredFC-BGA substrates
Shinko Electric IndustriesInferredFC-BGA substrates
Unimicron TechnologyInferredFC-BGA substrates
LG InnotekInferredFC-BGA substrates
Kyocera AVXInferredMLCCs
AT&SInferredFC-BGA substrates

Geopolitics and risk

The company operates manufacturing bases in South Korea, China, Vietnam, and the Philippines, and sells globally. This footprint creates exposure to changing China demand, US-China technology restrictions, tariffs, and potential supply-chain disruption. Its FC-BGA and AI-system supply chains depend heavily on Taiwan-based customers, foundries, substrate suppliers, and assembly ecosystems, making it vulnerable to Taiwan Strait disruption. To diversify and expand capacity, it is investing heavily in a Vietnamese FC-BGA facility. This expansion increases exposure to construction and yield ramp risks before the new capacity contributes to earnings, but it ultimately broadens its manufacturing base outside of Northeast Asia.

Risk matrix
Risk	Severity	Why it matters
AI-server demand concentration	High	Component and Package Solution growth depends on sustained AI-server and data-center investment.
FC-BGA customer qualification risk	High	Advanced substrates require long qualification cycles; missing a major platform leaves capacity underutilized.
Japanese and Taiwanese substrate competition	High	Incumbents retain scale and established qualification in high-end substrate supply.
China-related demand and geopolitical exposure	Medium	Exposure to China demand, US-China technology restrictions, and tariffs.
Taiwan Strait disruption	Medium	Supply chains depend heavily on Taiwan-based ecosystems.
Materials and equipment bottlenecks	Medium	Output depends on specialized films, laminates, and equipment with qualification constraints.
Vietnam execution risk	Medium	Planned expansion increases exposure to construction and yield ramp risks.
Glass-core commercialization risk	Medium	GlaSSEM targets second-half 2027 operations but requires process stabilization and qualification.

Governance and ownership

Samsung Electro-Mechanics is an independent listed company within the Samsung Group rather than a state-owned enterprise. Samsung Electronics is its largest shareholder, holding 23.7% of total shares, which provides substantial influence but not majority voting control. The board has seven directors and separates the CEO and board-chair roles, with Chang Duckhyun serving as CEO and Choi Jongku as independent board chair. It reports under Korean IFRS and maintains formal audit, compensation, and ESG committees, ensuring standard listed-company disclosure obligations.

What to watch

Whether Package Solution sustains year-over-year growth above 37% as FC-BGA demand shifts to recurring production.
Whether it announces additional named hyperscale, ASIC, GPU, CPU, or accelerator customers beyond AMD.
Whether the Vietnamese FC-BGA expansion receives formal confirmation and ramps without yield delays.
Whether GlaSSEM is legally established in 2026 and begins equipment installation.
Whether the glass-core venture meets its target for full-scale operation in the second half of 2027.
Whether the company discloses a larger AI-server MLCC revenue mix or capacity expansion.

Recent developments

July 30, 2026Second-quarter 2026 Package Solution revenue rose 37% year over year to Korean won 771.6 billion.
July 2, 2026Signed the definitive GlaSSEM joint-venture agreement with Dongwoo Fine-Chem.
April 30, 2026First-quarter 2026 Package Solution revenue rose 45% year over year to Korean won 725.0 billion.
March 18, 2026Choi Jongku elected as board chair and independent director.
January 23, 2026Reported FY2025 revenue of Korean won 11.3145 trillion and operating profit of Korean won 913.3 billion.
November 5, 2025Signed an MOU with Sumitomo Chemical Group to establish a joint venture for glass-core substrates.

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About this profile

Compiled with AI-assisted research from company filings, market data, and published reporting as of September 13, 2026, then reviewed by AsiaAI.FYI. Figures marked Estimate are not company-reported. Check primary filings before relying on any number.

Confidence: B. Financial results, governance, and the GlaSSEM joint venture have strong company support, but market capitalization, customer concentration, and AI-derived revenue share are weaker.

Main sources: Company financial-information disclosures; Quarterly and annual results releases; Corporate-governance and shareholder disclosures; Korean DART annual-report record.

All 85 sources

Position in the AI stack

Supplies multilayer ceramic capacitors for AI servers and FC-BGA package substrates for AI accelerators and data-center processors.

Legal name: Samsung Electro-Mechanics Co., Ltd.
Formerly: Samsung Sanyo Parts
Headquarters: Suwon, Republic of Korea
Founded: 1973
Founders: Samsung Group
Leadership: Chang Duckhyun / 장덕현, President and Chief Executive Officer
Choi Jongku / 최종구, Board Chair and independent director
Employees: 11,514
Ownership: Publicly listed; part of Samsung Group
Listings: KRX: 009150 (Ordinary shares)
KRX: 009155 (Preferred shares)
Business: Electronic components and advanced semiconductor package substrates
Sector: Electronic Components
Packaging, Test & Substrates
Website: samsungsem.com/global