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Press Release 2024.04.29

Samsung Electro-Mechanics, 2024 Q1 Performance

▶ Achieved revenue of KRW 2.6243 trillion, and operating income of KRW 180.3 billion
- Revenue increased by 30% YoY, operating income increased by 29% YoY
- Revenue increased by 14% QoQ, and operating income increased by 63% QoQ
- Improved performance YoY and QoQ due to the expansion of supply of high-specification components for new flagship smartphones and industrial and automotive components

▶ Plan to continue expanding the supply of high-value and high-performance components such as servers and automotives in Q2

 

On April 29, Samsung Electro-Mechanics announced that it posted revenue of KRW 2.6243 trillion and operating income of KRW 180.3 billion on a consolidated basis in the first quarter of 2024.

 

Samsung Electro-Mechanics gained revenue increase of KRW 602.5 billion (30%) YoY and KRW 318.1 billion (14%) QoQ, and operating income increase of KRW 40.2 billion (29%) YoY and 69.9 billion (63%) QoQ.

 

Samsung Electro-Mechanics expanded its supply of high-performance camera modules such as folded zoom due to increased sales of high-value MLCC for industrial and automotive applications such as AI servers and the launching of new flagship smartphone products, resulting in increased sales and operating income YoY and QoQ.

 

As for the second quarter, the market for high value-added products such as industrial and automotive MLCC and AI/server package substrate is expected to grow. Samsung Electro-Mechanics plans to increase its customer response by concentrating its business capabilities on high-end items that are anticipated to have steady growth.

 

Quarterly Performance of Samsung Electro-Mechanics 

(Unit: KRW 100 million) 


 

Performances and Forecasts for the Respective Business Units 

 

The Component Unit recorded Q1 revenue of KRW 1.23 trillion, up 24% YoY and up 5% QoQ. Samsung Electro-Mechanics’ sales increased by expanding supply of high value-added products such as industrial MLCCs including AI servers and power supplies, and MLCCs for automotive applications. MLCC demand is anticipated to increase in the second quarter due to moderate growth in SET demand. Samsung Electro-Mechanics intends to boost sales of ultra-high-capacity MLCC for AI servers and small-sized, high-capacity IT products, and continue expanding its line of high value-added automotive products whose demand is increasing as automobiles become more electrified.

 

The Optics & Communication Solution Unit recorded Q1 revenue of KRW 1,173.3 billion, up 47% YoY and up 32% QoQ. Samsung Electro-Mechanics increased its revenues by expanding the supply of high-pixel products, high-definition slim folded zoom to major customers and high-specification products with variable aperture to international customers. Samsung Electro-Mechanics plans to respond promptly to new high-performance camera module products for domestic and overseas customers, expand the supply of high-resolution camera modules for automotive applications, and concentrate on creating next-generation products such as hybrid lenses and all-season, weather proof heated cameras

 

The Package Solution Unit recorded Q1 revenue of KRW 428 billion won, up 8% YoY. Although the supply of BGA and ADAS for ARM processors and FCBGA for high-value automotives related to autonomous driving increased, sales dropped from the previous quarter as a result of a downturn in demand from several applications, including PC and mobile. Samsung Electro-Mechanics plans to expand the supply of FCBGA for PC/server CPUs and BGA substrates for memory as the demand for SET products such as PCs and servers is expected to recover gradually. As the market for high value-added products including servers and AI accelerators has passed the low point and is predicted to rise in the future, Samsung Electro-Mechanics aims to promptly respond to customer demand by operating a new plant in Vietnam and stabilizing mass production.

 

Earnings by each Business Unit of Samsung Electro-Mechanics 

(Unit: KRW 100 million) 

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