Samsung Electro-Mechanics said it surpassed 3 trillion won in quarterly revenue for the first time, driven by a surge in artificial intelligence-related demand that lifted sales of high-value products for industrial and automotive uses. The company said the growth trend is expected to continue in the second quarter as well.
In a regulatory filing on Wednesday, Samsung Electro-Mechanics reported first-quarter consolidated revenue of 3.2091 trillion won and operating profit of 280.6 billion won. Revenue rose 470.5 billion won, or 17%, from a year earlier, while operating profit increased 80.1 billion won, or 40%.
The company said results improved as it expanded supply of products such as multilayer ceramic capacitors, or MLCCs, for AI servers and advanced driver-assistance systems, and flip-chip ball grid array, or FC-BGA, substrates, supported by solid demand for high-value industrial and automotive components.
It said demand strength is expected to persist for high-value MLCCs and FC-BGA products used in AI servers and data centers, citing upgrades to data center infrastructure and rising power consumption by AI servers.
On FC-BGA, the company said demand for high-performance semiconductors is surging as adoption of agentic AI spreads. It said existing customers are asking for more supply and that overall demand exceeds the company’s production capacity.
Samsung Electro-Mechanics said it is discussing price increases with major customers to reflect higher raw material prices and supply conditions for materials such as gold and copper. It said its full-year outlook remains cautious given external variables, but added that the FC-BGA business could post a sharp revenue increase on rising demand tied to expanded AI investment by big tech companies.
MLCC demand is also surging, the company said, with a growing trend toward long-term supply contracts. It said second-quarter MLCC demand is expected to grow from the first quarter across all applications. The company said it has launched new products with twice the capacity for graphics processing units and power modules as power consumption rises on next-generation AI server platforms, and that customers have responded positively. It added it is pursuing long-term contracts to ensure stable supply.
The company said it is also expanding MLCC sales into the aerospace sector. For ground terminals, it said, similar products to those used for AI servers — including small, high-temperature and high-capacity MLCCs — are used, and the company is participating as a key supplier. It said it is doing business with leading global customers and aims to secure an early position in the growing aerospace MLCC market and strengthen its mid- to long-term growth base.
Looking ahead, Samsung Electro-Mechanics said it expects performance growth in the second quarter from both the previous quarter and a year earlier. It said AI data center investment is expected to continue in the second half and automotive demand to remain steady, which could lead to a larger expansion in results.
The company also said it plans to supply camera modules for robotaxis and humanoid robots. It said it will expand its lineup for high-resolution sensing based on its camera technology for IT devices and its capabilities to internalize key components, and will further develop specialized technologies such as all-weather camera products. It said it plans to supply new camera module products for robotaxis in the second quarter and for humanoids in the second half. It added it plans to secure new solutions for next-generation physical AI in a timely manner to respond proactively to new product needs and future markets.
* This article has been translated by AI.
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