Samsung Electro-Mechanics said it posted record quarterly results, with sales topping 3 trillion won for the first time, helped by expanding demand tied to artificial intelligence infrastructure. The company said momentum is expected to continue in the second quarter, led by higher-value industrial and automotive products.
In a regulatory filing on Wednesday, the company reported first-quarter consolidated sales of 3.2091 trillion won and operating profit of 280.6 billion won. Sales rose 470.5 billion won, or 17%, from a year earlier, while operating profit increased 80.1 billion won, or 40%.
The company said demand for industrial and automotive components rose as AI servers and autonomous driving expanded. It said increased supply of high-value products such as multilayer ceramic capacitors, or MLCCs, and flip-chip ball grid array substrates, or FC-BGA, supported the improvement. It added that demand for high-spec parts is rising quickly as data centers upgrade infrastructure and AI servers consume more power.
By business, the components division posted sales of 1.4085 trillion won, up 16% from a year earlier, as revenue grew in areas such as AI servers, power and networks and as shipments of automotive MLCCs increased. The package solutions division recorded 725 billion won in sales, up 45%, driven by expanded supply of substrates for AI accelerators, server CPUs and networking to global big-tech customers.
The optical solutions division reported sales of 1.0756 trillion won. The company said mass production ramped up for high-performance camera modules, including 200-megapixel cameras and slim folded zoom, and that supply of automotive products such as electric-vehicle and in-cabin cameras also increased.
For the second quarter, Samsung Electro-Mechanics said growth in industrial and automotive components is expected to continue as global big tech increases AI investment and autonomous driving technology advances. It said demand for FC-BGA substrates has expanded to a level that exceeds its supply capacity.
"As agentic AI spreads, demand for high-performance semiconductors is surging, and FC-BGA demand is exceeding our production capacity," the company said. "We are cautious about the full-year outlook due to external variables, but we expect significant growth in the FC-BGA business as AI investment expands."
The company said MLCC demand is also rising across applications, particularly for higher-capacity parts as next-generation AI server platforms draw more power. It said it has launched new products with double the capacity of existing ones for graphics processing units and power modules. It added that it is pursuing long-term supply contracts with customers to ensure stable supply.
Samsung Electro-Mechanics said it is expanding MLCC supply beyond AI servers to the aerospace sector. "We will secure an early lead in the aerospace MLCC market to strengthen our mid- to long-term growth foundation," it said.
In optical products, the company said it is moving into new markets by pursuing camera-module supply for next-generation physical AI areas such as robotaxis and humanoids. It plans to launch products for robotaxis in the second quarter and camera modules for humanoids in the second half of the year.
Samsung Electro-Mechanics said it expects performance growth in the second quarter from both the previous quarter and a year earlier, adding that results should improve further in the second half as AI data center investment and automotive demand continue to expand.
* This article has been translated by AI.
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