Samsung Electro-Mechanics (KRX: 009150), also known as SEMCO, is strengthening its core business with multilayer ceramic capacitors (MLCCs), a key component in AI servers and autonomous vehicles. As demand for high-performance semiconductors rises, the company's MLCC production utilization is climbing steadily, and its technological capabilities have been recognized at the national level. These factors are fueling optimism for improved Q2 results.

According to financial data provider FnGuide, SEMCO is expected to report Q2 2024 revenue of KRW 2.74 trillion and operating profit of KRW 217.3 billion, up 6.1% and 4.4% year-over-year, respectively. Despite a stronger won, increased MLCC utilization and recovering demand are seen as key drivers behind the improved performance.

The average USD/KRW exchange rate dropped from 1,452 in Q1 to 1,408 in Q2, creating some profitability pressure. However, the company's core business has remained strong. Industry sources estimate that MLCC utilization rose to 88% in Q2 from 85% in Q1, with both shipment volume and average selling prices increasing by 2% and 1%, respectively.

“MLCCs, camera modules, and substrates are all key AI components,” said Park Hyung-woo, an analyst at SK Securities. “Samsung Electro-Mechanics is maintaining high utilization, and rates could exceed 90% in Q3.”

AI Server MLCC: Emerging as Global No. 2

SEMCO is also expanding its presence in the AI server MLCC market. The company now holds approximately 40% of global market share in this segment, forming a duopoly with Japan's Murata, which holds about 45%.

While Murata continues to dominate the overall MLCC market with a 40%+ share, followed by Samsung Electro-Mechanics, TDK, Yageo, and Taiyo Yuden each holding 10–20%, the AI server MLCC space is increasingly defined by the competition between Samsung and Murata.

National Recognition for MLCC Technology

SEMCO's MLCC technology has also received national recognition. In May, South Korea's Ministry of Trade, Industry and Energy designated ultra-high-capacity, high-density MLCCs (≥21μF per unit volume) as a national core technology. Although the designation did not name a specific company, industry insiders confirm SEMCO is the only domestic firm with this capability.

“This MLCC technology enables high capacitance in a compact footprint,” said a company spokesperson. “It's currently used in smartphones, and we plan to expand its application into automotive electronics in the future.”

Samsung Electro-Mechanics' momentum in MLCCs, particularly for AI servers, reinforces its position as a global PCB and component leader, navigating external challenges while sharpening its core competitiveness.