[Market Focus] Samsung Electro-Mechanics Surges 7% on Expectations of Benefiting from Samsung Electronics-Tesla Alliance

Samsung Electro-Mechanics is showing a sharp rise of over 7% on expectations of benefiting from the contract between Samsung Electronics and Tesla.

As of 9:17 a.m. on July 30, Samsung Electro-Mechanics is trading at 1,478,000 won, up 104,000 won (7.57%) from the previous day.

It appears that the analysis by securities firms, which suggests that Samsung Electro-Mechanics is expected to benefit from Samsung Electronics' contract with Tesla for semiconductor foundry supply worth 16.5 billion dollars (approximately 22.8 trillion won), is influencing the stock price.

On this day, Park Kangho, a researcher at Daishin Securities, stated, "Regarding the supply contract for artificial intelligence semiconductors (AI6) between Samsung Electronics and Tesla, the flip-chip ball grid array (FC-BGA) business of Samsung Electro-Mechanics is expected to draw attention." He added, "Samsung Electro-Mechanics supplies FC-BGA, the semiconductor substrate for Samsung Electronics and Tesla's previous AI4 and AI5 semiconductors. With this supply contract by Samsung Electronics, the cooperative relationship between Tesla, Samsung Electronics, and Samsung Electro-Mechanics will be further strengthened."