[Click e-Stock] "Atom Expands Beyond Electric Vehicles to AI Data Centers"

KOSDAQ-listed company Atom is accelerating its push into the electric vehicle and artificial intelligence (AI) data center power markets, leveraging its proprietary planar (flat-type) transformer technology. The company, which initially focused on mobile chargers, is expanding its business domain to include automotive electronics and data center power devices, signaling a full-fledged transition from a simple component manufacturer to a power solutions enterprise.

Tae-woo Kwon, a researcher at Hana Securities, explained, "Atom is a KOSDAQ-listed company that manufactures transformers, a core component for voltage conversion. Unlike conventional wound-type transformers made by winding copper wire, Atom has secured original technology for planar transformers, which use flat-processed copper foil. This has enabled the company to expand applications from mobile chargers to TVs, electric vehicles, and data centers."

Atom's business structure consists of three main sectors: transformer manufacturing led by its headquarters and its Vietnam subsidiary; multilayer ceramic capacitor (MLCC) distribution through its subsidiary Cheonghan Electronics; and precision machining of ship and machinery parts through DST, which Atom acquired last year. Although component distribution and ship/machinery parts currently account for a larger share of revenue, the market increasingly views planar transformers as a new growth driver.

In particular, planar transformers are gaining attention as next-generation technology capable of overcoming the limitations of traditional wound-type transformers. Conventional wound-type transformers, which are made by winding thin copper wire dozens of times, have faced challenges with production automation and yield rates, and issues with bulkiness and heat generation have been consistently pointed out.

In contrast, Atom's planar transformers utilize a copper foil pattern structure to reduce both size and heat generation, and since there is no coil winding process required, they are highly advantageous for automated production. The core technology lies in minimizing transformer height to achieve a planar form, and industry experts assess that Atom possesses virtually unrivaled mass production capability in this area.

Kwon noted, "The key to automated production is achieving a planar form by lowering transformer height, and Atom is essentially the only company capable of mass producing transformers with a height under 3 centimeters. The company's core winding method and heat dissipation structure are also protected by domestic and international patents."

The expansion of the electric vehicle market also creates a favorable environment for Atom. Once a component is adopted in the automotive electronics supply chain, it is rarely replaced for a long period, so early entry translates into strong competitiveness. Recently, Atom secured its first long-term order to supply common mode (CM) filters for integrated charging control units (ICCU) used in Hyundai Mobis's electric vehicle platforms over a six-year period.

Commenting on this, Kwon said, "Once automotive transformers are adopted, they are difficult to replace for about five years, making barriers to entry high. This long-term supply contract for CM filters for Hyundai Mobis's ICCU demonstrates that the technology is translating into real revenue."

Market observers also view the expansion of AI data center power infrastructure as a new growth opportunity for Atom. Global data centers are rapidly evolving toward high-voltage, 800-volt direct current systems and 1-megawatt-class high-power racks. As a result, the importance of switch-mode power supplies (SMPS), which can reliably manage power in limited spaces, is increasing.

Although Atom is still in the early stages of entering the data center power supply market, the company is preparing to expand its presence, leveraging its transformer technology. Since transformers are the primary component to receive electricity within an SMPS, heat management and efficiency control technologies are considered key factors for product competitiveness.

The company recently signed a joint development agreement with Seongho Electronics for power supplies for data centers and optical communications, marking its entry into the finished product market. The strategy is to move beyond supplying standalone transformers and expand into high-output power modules.

Kwon stated, "The 3.3-kilowatt module aims for KC certification within the year, the 12-kilowatt module is targeting certification in the first half of next year, and development of a 50-kilowatt module is also planned. Ultimately, the company is targeting the larger market for optical communications and bidirectional high-output SMPS."

Performance improvement among its subsidiaries is also a positive factor. Cheonghan Electronics, a leading domestic MLCC distributor, is benefiting from increased demand for high-value MLCCs driven by growing data center investment. Rising MLCC prices are boosting not only distribution margins but also the value of inventory holdings.

DST is also maintaining growth momentum thanks to a boom in the shipbuilding industry. DST supplies precision-machined cylinder parts for ship engines to major domestic engine manufacturers, and as ship engines are increasingly being used for data center power generation, demand in this area is expanding.

Kwon said, "With order backlogs at major engine makers remaining strong and the proportion of high-value dual-fuel engines rising, both unit prices and volumes for parts are trending favorably. The positive performance of both subsidiaries is expected to further contribute to overall corporate growth."

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