Samsung Electro-Mechanics reported an earnings surprise for the second quarter, driven by a surge in demand for artificial intelligence (AI) servers and automotive components. The company secured long-term supply contracts for multilayer ceramic capacitors (MLCC) with over ten major clients, establishing a foundation for mid- to long-term growth.
On July 30, Samsung Electro-Mechanics announced that its consolidated revenue for the second quarter reached 3.4572 trillion won, with an operating profit of 440.4 billion won. The operating profit more than doubled compared to the same period last year, significantly exceeding market expectations. Revenue also saw a 24% increase year-on-year, reflecting a strong upward trend.
The company's component division, responsible for MLCCs, was the standout performer, achieving sales of 1.6494 trillion won, a substantial 29% increase from the previous year. Sales of MLCCs for data centers, including AI servers and networks, as well as automotive MLCCs for autonomous and eco-friendly vehicles, drove this growth.
Samsung Electro-Mechanics stated, "We have completed long-term supply contracts for MLCCs with over ten global hyperscale customers." The company aims to maintain stable profitability by actively responding to additional contract requests from major clients concerned about supply shortages.
The package solution division, which handles semiconductor substrates, also reported significant improvements, achieving sales of 771.6 billion won, a 37% increase year-on-year. This growth was attributed to the expansion of high-value products, including high-performance FC-BGA substrates for AI accelerators and server CPUs, as well as automotive substrates for autonomous driving.
The optical solution division recorded sales of 1.0362 trillion won, a 10% increase from the previous year, maintaining over 1 trillion won for two consecutive quarters. Although there was a slight 4% decrease from the previous quarter due to seasonal factors, the growth was supported by increased supply of specialized products such as camera modules for flagship smartphones and advanced driver-assistance systems (ADAS).
Looking ahead to the third quarter, Samsung Electro-Mechanics plans to significantly expand the supply of high-performance, high-value components in line with ongoing investments in AI infrastructure and the proliferation of autonomous driving technology. The company will also begin mass production of next-generation high-performance substrates and plans to expand substrate production facilities in Sejong and Busan.
Samsung Electro-Mechanics added, "We will increase the supply of high-performance cameras for new foldable phones while actively exploring new applications, such as cameras for humanoid robots, to accelerate revenue growth."
* This article has been translated by AI.
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