Sales Reach KRW 2.7846 Trillion, Operating Profit KRW 213 Billion
Rising Demand for High Value-Added Products in AI, Automotive, and Server Sectors
Big Tech Companies Expected to Expand Investment in the Second Half
On July 31, Samsung Electro-Mechanics announced that its consolidated sales for the second quarter of this year reached KRW 2.7846 trillion, with an operating profit of KRW 213 billion. Compared to the same period last year, sales increased by 8.2% and operating profit grew by 0.7%.
The company explained that increased demand for high value-added products such as AI, automotive, and server applications led to expanded supply of industrial and automotive MLCCs and FCBGA (Flip Chip Ball Grid Array) substrates for AI accelerators. As a result, both sales and operating profit increased year-on-year and quarter-on-quarter.
For the third quarter, the company expects that the launch of new smartphone models by domestic and overseas customers will sustain robust demand for IT components, AI server/network, and advanced driver assistance system (ADAS) products for industrial and automotive applications. Samsung Electro-Mechanics stated, “Thanks to the launch of new flagship smartphone models and steady demand for industrial and automotive products such as AI, server, network, and ADAS, we expect further growth compared to the second quarter.”
By business segment, the Components division posted second-quarter sales of KRW 1.2807 trillion, up 10% year-on-year and 5% quarter-on-quarter, as MLCC supply increased across all applications, including industrial, automotive, and IT. The company explained that growth in xEV (electric vehicles), the wider adoption of ADAS features, and increased demand for AI servers and networks drove greater supply of high value-added products.
For the second half of the year, Samsung Electro-Mechanics expects continued strong demand for industrial and automotive products, as big tech companies maintain their investment in AI servers and ADAS performance improves. The company plans to focus on expanding its customer base in the global leading AI server and network MLCC market, while also expanding its lineup of automotive MLCCs, including high-capacity and high-voltage products.
The Package Solution division recorded second-quarter sales of KRW 564.6 billion, up 13% year-on-year and quarter-on-quarter. Samsung Electro-Mechanics expanded its supply of high value-added package substrates, such as FCBGA for server applications to global big tech companies and BGA for ARM processors. The company also noted that FCBGA for AI accelerators, which began full-scale supply in the second quarter, contributed to the increase in sales. Looking ahead to the second half, the company expects continued demand for server and AI accelerator applications, and plans to respond to demand for memory substrates and SiP driven by new smartphone launches.
The Optics Solution division posted second-quarter sales of KRW 939.3 billion, up 3% year-on-year. Although sales declined quarter-on-quarter due to seasonal demand slowdown for flagship smartphones, the expansion of automotive-focused products such as in-cabin cameras, high-performance lenses, and hybrid lenses led to year-on-year sales growth. For the third quarter, the company plans to expand supply of camera modules based on new automotive technologies and target new applications such as robotaxis and humanoid robots.
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