- ▶Achieved revenue of KRW 2.3609 trillion and operating income of KRW 184 billion
- - Profit reduction due to weakening yen and increased competition
- ▶For the Q4, expecting decreased demands for components due to year-end seasonality
- - Pursuing supply expansion with a focus on high value-added markets such as automotive/servers
On September 26, Samsung Electro-Mechanics announced that it posted revenue of KRW 2.3609 trillion and operating income of KRW 184 billion on a consolidated basis in the third quarter of 2023.
While Samsung Electro-Mechanics gained revenue increase of KRW 140.4 billion (6%) QoQ, its operating income showed a reduction of KRW 21 billion (10%). Also, its revenue and operating income had decreased KRW 22.8 billion (1%) and KRW 127 billion (41%) YoY, respectively.
Samsung Electro-Mechanics explained that its operating income showed a reduction due to weakening yen and increased competition among suppliers, despite that it has gained revenue increase QoQ, following its supply expansion in high value-added MLCC and high-functional camera modules such as folded zoom, thanks to the new smartphone products launched by its major clients.
As for the Q4, although revenue decrease was expected for certain products due to component demand reduction triggered by year-end seasonality, Samsung Electro-Mechanics anticipates that the demands for high-functional products such as automotive, industrial products and so forth will continue to grow.
As such, Samsung Electro-Mechanics has established plans to reinforce its product competitiveness and line-ups with a focus on high value-added products such as automotive and industrial products.
Quarterly Performances of Samsung Electro-Mechanics
(Unit: KRW 100 million)
Performances and Forecasts for the Respective Business Units
The Component Unit recorded Q3 revenue of KRW 1.0959 trillion, up 9% QoQ. According to the explanation of Samsung Electro-Mechanics, the supply of MLCC has improved in all of the applications including IT, industrial and automotive, thanks to the global launching of new smartphone products and well-established market demands for automotive and server products. In the fourth quarter, the demand for MLCC is expected to show down-cycle due to year-end seasonality. Samsung Electro-Mechanics is planning to expand its revenue with a focus on high value-added products including small-sized and high-capacity IT products and to expand the supply of high-reliability automotive MLCCs.
The Optics & Communication Solution Unit recorded Q3 revenue of KRW 825.4 billion, up 6% QoQ. In this regard, Samsung Electro-Mechanics explained that it has enlarged the supply of high-functional products such as triple camera modules for foldable and high-specification products supplied to international and domestic clients. Samsung Electro-Mechanics has a plan to newly supply high-functional camera modules such as folded zoom and to proactively pursue the supply expansion and client diversification of high-pixel automotive products.
The Package Solution Unit recorded Q3 revenue of KRW 4.396 billion, up 1% QoQ. Also, Samsung Electro-Mechanics reported that it has expanded the supply of BGAs for 5G antenna and mobile memory and gained revenue increase in FCBGA for servers. In this connection, Samsung Electro-Mechanics has a plan to increase the supply of packages for ARM processors and to expand the sale of high value-added semi-conductor package substrates for servers/networks with continued growth expected.
Earnings by each Business Unit of Samsung Electro-Mechanics
(Unit: KRW 100 million)