- ▶ Q2 Sales: KRW 3,457.2 billion, Operating Profit: KRW 440.4 billion
- - Sales up 24%, operating profit up 107% year-on-year
- - Sales up 8%, operating profit up 57% quarter-on-quarter
- ▶ Signed long-term supply agreements (LTA) for MLCCs with over 10 global customers… Proactively responding to additional requests
- - Strong demand for high-performance components expected to continue; expanding supply of substrates for AI accelerators and server CPUs, as well as automotive camera modules
In the second quarter, Samsung Electro-Mechanics recorded consolidated sales of KRW 3,457.2 billion and operating profit of KRW 440.4 billion.
Sales increased by KRW 672.6 billion (24%) year-on-year and by KRW 248.1 billion (8%) quarter-on-quarter, while operating profit rose by KRW 227.4 billion (107%) year-on-year and by KRW 159.8 billion (57%) quarter-on-quarter.
The company’s performance improved thanks to increased sales of MLCCs for data centers such as AI servers and networks, as well as automotive applications, and increased supply of high value-added semiconductor substrates (FCBGA) for major global big tech customers, and automotive components related to ADAS and autonomous driving. In the third quarter, demand for AI, data center, and automotive components is expected to remain strong, driven by continued investment in AI infrastructure, improved performance of AI semiconductors, and the spread of autonomous driving technology.
Samsung Electro-Mechanics plans to ramp up mass production of high-performance substrates for new AI accelerators and server CPUs, and expand supply of high-performance automotive camera modules to increase sales. In particular, the company has signed long-term supply agreements for MLCCs with more than 10 customers, including major big tech companies, and is actively responding to additional long-term supply requests from key customers.
Samsung Electro-Mechanics Quarterly Results
(Unit: KRW 100 million)
Performance and Outlook by Business Division
The Component Unit’s Q2 sales reached KRW 1,649.4 billion, up 29% year-on-year and 17% quarter-on-quarter. The division showed strong performance across all three sectors, driven by sales growth of MLCCs for data centers (AI servers, networks, power), and increased automotive sales due to the advancement of autonomous driving and rising demand for xEVs (eco-friendly vehicles).
In the third quarter, demand for high-capacitance and high-reliability MLCCs is expected to increase, driven by continued investment in AI infrastructure. Samsung Electro-Mechanics plans to strengthen supply by developing and delivering the latest MLCC models for AI in a timely manner, and to actively expand into high-capacitance and high-voltage products in line with the growth of the autonomous driving and eco-friendly vehicle markets. In addition, the company will secure stable volumes based on long-term MLCC supply agreements already signed with global customers, while also actively responding to additional requests from major customers.
The Package Solution Unit recorded Q2 sales of KRW 771.6 billion, up 37% year-on-year and 6% quarter-on-quarter. The division’s performance was driven by continued supply of high value-added semiconductor substrates for AI accelerators and server CPUs to major big tech customers, as well as increased supply of automotive substrates related to autonomous driving.
In the third quarter, demand for high value-added FCBGA substrates for data centers is expected to remain strong. The company plans to increase sales by mass-producing new products for AI accelerators and server CPUs for global big tech customers, and to actively respond to customer demand by smoothly expanding production facilities both domestically and overseas.
The Optical Solution Unit’s Q2 sales reached KRW 1,036.2 billion, down 4% quarter-on-quarter but up 10% year-on-year. The division’s performance improved year-on-year due to increased supply of camera modules for new flagship smartphones and specialized automotive products to domestic and overseas customers.
In the third quarter, the company plans to expand supply of high-performance cameras for new foldable phones to strategic customers and strengthen its differentiated product lineup for global customers. In addition, Samsung Electro-Mechanics will continue to expand into new applications, such as timely supply of specialized products for next-generation platforms to global EV customers and cameras for humanoids.
Samsung Electro-Mechanics Sales by Business Division
(Unit: KRW 100 million)