SAMSUNG ELECTRO-MECHANICS

Samsung Electro-Mechanics posted revenue of KRW 2.6168 trillion and operating income of KRW 410.5 billion on a consolidated basis in the first quarter of 2022.
 
This marks a YoY increase of KRW 325.4 billion (14%) and a QoQ increase of KRW 186.9 billion (8%) in revenue and a YoY increase of KRW 53.8 billion (15%) and a QoQ increase of KRW 94.3 billion (30%) in operating income.
 
Samsung Electro-Mechanics' performance improved thanks to an increase in sales of high-performance package substrates such as industrial/automotive high-value MLCCs and high-end AP/ultra-thin CPUs as well as the increased supply of high-end camera modules for flagship products.
 
Although the supply of some products is expected to decrease in the second quarter which is off-season, demand for high value-added products such as servers and electric vehicles is projected to remain strong.
Samsung Electro-Mechanics will focus its business capabilities on the growing high-end market and improve customer responsiveness.
 
Earnings by Quarter
(Unit: KRW 100M)

Earnings and Forecast by Business Unit
 
The Component Unit recorded Q1 revenue of KRW 1.2293 trillion, up 13% YoY and 5% QoQ. Although it was affected by the inventory adjustment, Samsung Electro-Mechanics recorded increased revenue by expanding the supply of high value-added products such as high-performance industrial/automotive products and compact/ultra-high-capacitance MLCCs for IT.
 
In Q2, demand for general-purpose products is forecast to be weak, but demand from high-end markets such as 5G, servers, and electric vehicles will likely remain solid. Samsung Electro-Mechanics will expand its lineup of high-reliability MLCCs, such as high-temperature and high-voltage, to aggressively target the industrial and automotive markets and flexibly respond to the demand for high-value IT products.
 
The Optics & Communication Solution Unit posted revenue of KRW 867.9 billion, up 12% QoQ and 3% YoY, by expanding the supply of high-spec camera modules to strategic partners, such as folded zoom and high-performance camera modules for automobiles.
 
In Q2, demand for camera modules is projected to decline due to the off-season characteristics, but the automotive camera module market is expected to see continued growth on the back of advanced ADAS and autonomous driving technologies.
Samsung Electro-Mechanics will step up the supply of automotive camera modules to major global partners.
 
The Package Solution Unit posted Q1 revenue of KRW 519.6 billion, up 44% YoY and 8% QoQ as it expanded the supply BGA for high-end APs and high-value SSD memories, as well as FCBGA for laptops and ultra-thin CPUs.
 
As the tight supply situation in the semiconductor package substrate market is expected to continue, Samsung Electro-Mechanics will expand the supply of high-value package substrates for high-end AP and ultra-thin CPUs. With the increasingly multi-layered/large-area trend, there are not many companies that can supply server substrates with high technical complexity. Therefore, Samsung Electro-Mechanics is preparing to become the first Korean company to mass-produce high value server package substrates in the second half of the year.
 
Revenue by Business Unit
(Unit: KRW 100M)