[Click eStock] "Atom Emerges as a Game Changer for AI Data Centers with Korea's Only Flat-Type Transformer"

Atom, a company specializing in small transformers, is emerging as a key component supplier for AI data centers and the electric vehicle market, driven by its unique flat-type transformer technology—the only one of its kind in Korea. By securing automation and miniaturization capabilities that surpass the limitations of conventional coil-type transformers, Atom is drawing attention as a new beneficiary in the midst of a global supply chain realignment.

Seungdoo Na, a researcher at SK Securities, evaluated, "Atom's proprietary flat-type transformer technology, unique in Korea, is expected to become a true game changer in the transformer sector across various industries."

Atom was listed on the KOSDAQ market in December 2023 as a company specializing in small transformers. The company currently manufactures and sells transformers applied in home appliances, portable chargers, and electric vehicles. Through its affiliates, Cheonghan Electronics and DST, Atom is also engaged in MLCC distribution and the shipbuilding and defense engine parts business.

The market is particularly focused on Atom's flat-type transformer technology. Conventional coil-type transformers are typically made by winding copper wire around a core. In contrast, flat-type transformers use a planar copper foil pattern as the winding. As a result, they are recognized for their miniaturization, lighter weight compared to existing products, and superior thermal management efficiency.

Another advantage is their reduced susceptibility to electromagnetic interference. With improved utilization of internal space, customers can achieve greater design flexibility, while enhanced thermal management efficiency leads to improved product stability and power efficiency.

Above all, the most highly valued aspect in the industry is the potential for production automation. Coil-type transformers have traditionally required skilled labor to ensure uniform quality. However, flat-type transformers allow for the establishment of automated processes, enabling both efficient supply chain management and cost competitiveness.

Researcher Na explained, "Unlike coil-type transformers, which require labor to wind the coils uniformly, flat-type transformers offer clear advantages in supply chain management and cost reduction due to their suitability for automated production."

Indeed, in the global electronics industry, the adoption of flat-type transformers is rapidly increasing as demand for high-efficiency, high-power products grows. In high-output environments such as AI servers, data centers, electric vehicles, and industrial power supplies, issues related to heat dissipation and power efficiency have become critical competitive factors.

Atom is accelerating not only technology development but also mass production. The company is expediting the operation of new factories to expand transformer supply beyond portable chargers to TVs and electric vehicles. Industry observers believe that if production capacity expansion becomes full-scale, Atom's mid- to long-term growth could accelerate significantly.

Notably, Atom's recent entry into the AI data center market is seen as a core growth driver. In May, Atom signed a collaborative contract with Sungho Electronics to jointly develop and produce SMPS for AI data centers. SMPS is a key power supply unit that determines the power efficiency of servers and data centers.

The global AI data center industry is rapidly restructuring around high-voltage-based power infrastructure. As competition for AI server performance intensifies, power consumption is soaring. Consequently, demand for flat-type transformers—which can increase power efficiency, reduce heat, and maximize space utilization—is expected to grow significantly.

Researcher Na emphasized, "Demand for flat-type transformers—which are highly efficient, take up less space, and offer easy thermal management—is bound to expand, and they are expected to become a core part of the AI data center value chain going forward."

The growth of Atom's affiliates is also a positive factor. Cheonghan Electronics, responsible for MLCC distribution, stands to benefit from the increase in AI data center investment. With surging demand for high-value-added multilayer ceramic capacitors (MLCCs) for AI servers, expectations for improved performance among related supply chain companies are also rising.

Researcher Na analyzed, "The MLCC industry has entered a supercycle due to the explosive increase in AI data center investment. In particular, Cheonghan Electronics, which has a high-value-added MLCC supply chain, is expected to see even faster growth."

DST, a company specializing in ship engine parts processing, is also emerging as a new growth axis. DST supplies cylinder modules and engine parts to major domestic shipbuilders. With the recent recovery in the domestic shipbuilding industry and the growing potential for ship engines to be used in data center power supply, expectations for additional orders are rising.

Industry experts believe that the spread of the AI industry will lead to increased investment in power infrastructure, expanding the growth potential of all Atom affiliates. Since Atom has established a presence across key AI-era infrastructure supply chains—from transformers to MLCCs and ship engine parts—there is ample possibility for market revaluation.

Researcher Na stated, "This is a time when market revaluation is anticipated. Atom is rapidly expanding its business scope into new areas such as AI data centers, electric vehicles, and defense, based on its flat-type transformer technology."

This content was produced with the assistance of AI translation services.