Samsung Electro-Mechanics Opens Era of 10 Trillion KRW Annual Sales

Sales of 10.3 Trillion KRW and Operating Profit of 735 Billion KRW
Driven by Expansion of High Value-Added Product Supply

Samsung Electro-Mechanics surpassed annual sales of 10 trillion KRW for the first time since its founding last year, driven by the expansion of high value-added product supply.

On the 24th, Samsung Electro-Mechanics announced that its consolidated operating profit for last year was preliminarily estimated at 735 billion KRW, an 11.3% increase compared to the previous year.

Sales reached 10.2941 trillion KRW, up 15.8% year-on-year, exceeding 10 trillion KRW for the first time.

Increased demand for high value-added products led to expanded supply of automotive multilayer ceramic capacitors (MLCC) and server semiconductor substrates FC-BGA (Flip-Chip Ball Grid Array), resulting in higher sales and operating profit.

Last year, sales of automotive MLCC achieved double-digit growth compared to the previous year through expansion of the entire product lineup including high-temperature and high-pressure products and entry into new customers.

The Package Division's annual sales also increased compared to the previous year due to the full-scale operation of the Vietnam production line and expanded supply of high value-added substrate products.

Operating profit in the fourth quarter of last year was 115 billion KRW, up 0.7% year-on-year, and sales were 2.4923 trillion KRW, up 8.4%.

Looking at the performance by business segment, the Component Division, responsible for MLCC, recorded sales of 1.0818 trillion KRW in the fourth quarter of last year, up 11% year-on-year but down 10% from the previous quarter.

Sales increased year-on-year due to expanded supply of automotive MLCC, but decreased from the previous quarter due to seasonal factors including year-end inventory adjustments by customers.

The Package Solution Division, which operates the semiconductor package substrate business, posted sales of 549.3 billion KRW in the fourth quarter of last year, up 24% year-on-year but down 2% from the previous quarter.

Performance improved compared to the previous year due to expanded supply of FC-BGA for servers and networks to global customers, but sales decreased from the previous quarter due to year-end smartphone inventory adjustments.

The Optical Solution Division, which operates the camera module business, recorded sales of 861.2 billion KRW in the fourth quarter of last year, down 2% year-on-year but up 0.1% from the previous quarter. This was influenced by year-end inventory adjustments ahead of new model launches by major automotive customers.

Samsung Electro-Mechanics forecast that strong AI demand, including high growth in AI servers, and the expansion of automotive electrification will continue to drive growth in the automotive market this year.

Accordingly, operating profit in the first quarter of this year is expected to achieve double-digit growth compared to both the previous quarter and the same period last year.

The company stated, "We plan to strengthen our high value-added product lineup such as MLCC and package substrates for AI servers, automotive MLCC, and camera modules, and continue to diversify customers and expand supply."