Samsung Electro-Mechanics(009150) was up more than 7% in early trading on the 23rd. Buying appears to be pouring in from investors after news that it signed a large supply deal with global large corporations.
In the main board, Samsung Electro-Mechanics was trading at 1,449,000 won as of 9:46 a.m., up 104,000 won (7.73%) from the previous session.
Samsung Electro-Mechanics said in a filing that it signed a supply contract worth about 300 billion won for multilayer ceramic capacitors (MLCC) for artificial intelligence (AI) servers with a global large corporation.
The contract amount is 295.12 billion won. This is about 2.6% of Samsung Electro-Mechanics' total sales on a consolidation basis last year (11.3145 trillion won). The contract period runs from Jan. 1 to Dec. 31 next year.
Samsung Electro-Mechanics said it holds more than a 40% share in the MLCC market for AI servers. It is also discussing mid- to long-term supply plans with another global client.