The Component Unit's Q4 revenue was KRW 833.1 billion, down 10% from the previous quarter. Samsung Electro-Mechanics posted increased sales in automotive MLCCs thanks to the rise in the supply of high value-added MLCCs such as for ADAS and electric vehicles, but revenue decreased due to delayed demand recovery for IT products such as smartphones and PCs and inventory adjustments.
Samsung Electro-Mechanics will strive to secure profitability by improving productivity and operational efficiency, and to improve earnings by expanding the lineup of high-end automotive products including high-temperature and high-pressure models.
The Optics & Communication Solution Unit recorded KRW 655.5 billion in revenue, down 27% from the previous quarter. Despite the expanded supply of automotive camera modules to overseas customers, the supply of IT camera modules decreased due to the off-season effect.
As the demand for high-performance camera modules is forecast to increase, Samsung Electro-Mechanics plans to increase the supply of products featuring new technologies such as high-pixel/high-magnification zoom. Furthermore, the company seeks to expand the automotive camera module business by diversifying partners.
The Package Solution Unit posted Q4 revenue of KRW 479.8 billion, up 0.2% YoY on the back of increased supply of FCBGA for networks and automobiles.
Although demand for some applications such as smartphones and PCs is projected to decrease this year, the high-end package substrate market for servers and automobiles is forecast to see continued growth.
Samsung Electro-Mechanics plans to expand the supply of high value-added products with differentiated technologies, such as implementing multi-layers and microcircuits, starting with the server package substrate that the company began mass production for the first time in Korea last year.