SAMSUNG ELECTRO-MECHANICS

Samsung Electro-Mechanics announced on April 29th that it recorded consolidated revenue of KRW 2,738.6 billion and operating profit of KRW 200.5 billion in the first quarter.

Revenue increased by KRW 124.7 billion (5%) year-on-year and by KRW 246.3 billion (10%) quarter-on-quarter, while operating profit increased by KRW 16.9 billion (9%) year-on-year and by KRW 85.5 billion (74%) quarter-on-quarter.

Samsung Electro-Mechanics explained that revenue and operating profit increased compared to both the same period last year and the previous quarter, thanks to the effect of flagship smartphone launches and expanded supply of high-value-added MLCCs for AI servers and industrial/automotive applications, as well as high-performance camera modules such as folded zoom.

In the second quarter, demand for high-value-added products such as industrial and automotive MLCCs for AI servers and package substrates for AI accelerators is expected to continue expanding. Samsung Electro-Mechanics plans to focus its business capabilities on high-end products, which are expected to show sustained growth, and to strengthen customer responsiveness.

Samsung Electro-Mechanics Quarterly Performance 

(Unit: KRW 100 million) 

Business Unit Performance and Outlook

[Component]

The Component Unit recorded Q1 revenue of KRW 1,216.2 billion, a 19% year-on-year increase and a 12% quarter-on-quarter increase. Samsung Electro-Mechanics explained that revenue increased due to the launch of strategic customer smartphones, which expanded the supply of high-value-added products centered on IT MLCCs and industrial and automotive MLCCs for AI servers, ADAS, etc.

For Q2, demand for industrial and automotive MLCCs is expected to remain steady. Samsung Electro-Mechanics plans to expand sales focusing on high-value-added products such as high-temperature and high-voltage MLCCs for AI servers and ultra-high-capacity MLCCs for network applications, while responding promptly to market demand for automotive MLCCs.

[Package Solution]

The Package Solution Unit recorded Q1 revenue of KRW 499.4 billion, a 17% year-on-year increase. Although supply of BGAs for mobile APs and memory increased, revenue declined quarter-on-quarter due to seasonal demand weakness in some applications such as PCs.

In Q2, demand is expected to expand centered on BGAs for ARM processors and FCBGAs for AI accelerators. Samsung Electro-Mechanics stated it plans to achieve double-digit year-on-year FCBGA revenue growth by stabilizing mass production at its new Vietnam factory, which began full-scale operation last year.

[Optical Solution]

The Optical Solution Unit’s Q1 revenue was KRW 1,023 billion, a 12% year-on-year decrease but a 19% quarter-on-quarter increase. Samsung Electro-Mechanics stated that it expanded the supply of IT camera modules including high-pixel products and high-definition folded zoom to domestic and foreign customers, as well as camera modules for global EV customers.

In Q2, while smartphone camera module demand is expected to weaken, the company plans to strengthen its lineup of high-performance products such as slim camera modules for IT to meet market demands for camera differentiation. In addition, Samsung Electro-Mechanics plans to focus on growing its automotive product business with the advancement of autonomous driving, expanding the supply of all-weather camera modules and commencing mass production of new hybrid lenses.

Samsung Electro-Mechanics Revenue by Business Unit 

(Unit: KRW 100 million)