AI Boom Spreads to Electronic Components Market

The growth of the Artificial Intelligence (AI) semiconductor market is heightening profit expectations for related electronic component manufacturers. The increasing demand for high-performance chips for AI technology is impacting not only memory semiconductors but also the overall electronic components industry, down to substrates and small components like MLCCs.

The rise in AI servers is creating a ripple effect of increased demand across the entire supply chain, including expanded use of FC-BGA, higher demand for memory module substrates, and an increased number of MLCCs being mounted.

Samsung Electro-Mechanics is set to benefit from MLCCs and FC-BGA for AI servers, Daeduck Korea from both FC-BGA and memory substrates, and LG Innotek from the growing demand for high-spec substrates.

As long as AI semiconductor investment continues, the benefits are likely to extend beyond chip manufacturers to the entire supply chain, including substrates, MLCCs, and module substrates.