As Japan's Murata, the No. 1 corporations in multilayer ceramic capacitors (MLCC), and Japan's Ibiden, the No. 1 corporations in flip-chip ball grid array (FC-BGA) substrates for artificial intelligence (AI) servers, raised their annual guidance, there is an outlook that Samsung Electro-Mechanics' MLCC and FC-BGA supply will also gain traction. The fourth quarter is typically a seasonal off-peak period with weak results, but demand related to AI is increasing.
MLCCs are components necessary to run electronic devices, called the "rice of the electronics industry." They serve as a "dam" that stores electricity and releases it in set amounts. FC-BGA fixes semiconductors stably and transmits electrical signals. It is evaluated as a next-generation, high-value substrate suitable for AI semiconductors, which are getting larger.
According to Murata on the 10th, the company raised its annual sales and operating profit guidance through its fiscal year 2026 second-quarter (July 1, 2025–Sept. 30, 2025) earnings release to 17.4 trillion yen (about 1.65153 quadrillion won) and 280 billion yen (about 265.76 billion won), from 16.4 trillion yen (about 1.559 quadrillion won) and 220 billion yen (about 210 billion won), respectively. Ibiden also raised its initial sales and operating profit guidance from 415 billion yen (about 400 billion won) and 55 billion yen (about 520 billion won) to 420 billion yen (about 398.64 billion won) and 61 billion yen (about 578.9 billion won). With the growth of the MLCC and FC-BGA markets, it raised its annual operating profit outlooks to about 27% and 11%, respectively.
Murata and Ibiden raised their outlooks as the supply of key components such as MLCC and FC-BGA increased in step with the growth of the AI industry. Through its earnings release, Murata said, "(AI) data center-related demand is growing faster than expected, and the MLCC product lineup is performing well." Ibiden also explained, "Sales of high value-added products centered on AI servers are expected to be solid."
Amid this, there is an outlook that Samsung Electro-Mechanics' MLCC and FC-BGA supply volumes will also increase. Although the fourth quarter has typically been an off-season for the IT industry with lower utilization rates, AI demand has continued to grow. Samsung Electro-Mechanics' fourth-quarter MLCC utilization is said to be maintained above 90%, effectively at the maximum. The industry expects that as MLCC demand growth continues into next year, Samsung Electro-Mechanics will carry out capital expenditures to expand production capacity by more than 15% in response. Utilization for AI server FC-BGA is also understood to be increasing ahead of supplies to big tech corporations next year, including Broadcom, Google, Meta and Tesla.
Expectations for earnings are also rising. According to FnGuide, Samsung Electro-Mechanics' fourth-quarter operating profit outlook is 212.9 billion won. Compared with the same period last year (115 billion won), that is an increase of about 85%. Yang Seung-su, a researcher at Meritz Securities, explained, "As global demand for passive components and package substrates shows strength, it suggests that favorable conditions are accelerating in both of Samsung Electro-Mechanics' two pillars, the MLCC and FC-BGA institutional sector."