Samsung Electro-Mechanics achieved record quarterly sales and operating profit, driven by strong demand for multilayer ceramic capacitors (MLCC) and semiconductor packages for artificial intelligence (AI) data centers.
On October 28, Samsung Electro-Mechanics announced that its consolidated sales for the third quarter reached 3.7633 trillion won, with an operating profit of 691 billion won. This marks a 30% increase in sales and a 165% rise in operating profit compared to the same period last year. Compared to the previous quarter, sales and operating profit grew by 9% and 57%, respectively.
The increase in performance was driven by growth across all sectors, particularly in AI-related products. The expansion of sales in the components division, along with increased supply of FCBGA for automotive applications and camera modules for next-generation electric vehicle (EV) platforms, contributed to the overall improvement.
The components division achieved sales of 1.883 trillion won, a 36% increase year-on-year. Demand for products aimed at AI data centers, including servers, networks, and power supplies, saw broad growth. The company plans to continue long-term supply agreements for MLCC with major tech clients and to develop next-generation high-capacity products ahead of the market.
Sales in the package solution division surged to 939 billion won, a 58% increase from the previous year. Growth was driven by the supply of high-value products for data centers, including central processing units (CPUs) and AI accelerators, as well as high-performance substrates for advanced driver-assistance systems (ADAS) and autonomous driving.
The optical solutions division recorded sales of 941.3 billion won, a 3% increase year-on-year. The introduction of new 200-megapixel folded zoom production, supply of camera modules for foldable phones, and increased sales for global EVs supported this performance. In the fourth quarter, the company plans to expand production of camera modules for the next flagship smartphone and increase supply for autonomous driving and humanoid products.
Samsung Electro-Mechanics stated, "In the fourth quarter, the strong demand for high-spec components for AI data centers and automotive products due to advancements in autonomous driving will continue. We plan to strengthen our market dominance through technological leadership and timely responses."
* This article has been translated by AI.
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