SAMSUNG ELECTRO-MECHANICS

In the third quarter, Samsung Electro-Mechanics recorded consolidated revenue of KRW 2.889 trillion and operating profit of KRW 260.3 billion. Compared to the same period last year, revenue increased by KRW 273.7 billion (10%) and operating profit by KRW 35.4 billion (16%). Compared to the previous quarter, revenue grew by KRW 104.4 billion (4%) and operating profit by KRW 47.3 billion (22%).

Driven by stronger demand for premium solutions in AI, automotive, and server applications, the company expanded its supply of industrial and automotive MLCCs and server FCBGAs, resulting in higher revenue and operating profit both YoY and QoQ.

In the fourth quarter, demand for high value-added products in automotive and AI applications is expected to remain strong. Samsung Electro-Mechanics plans to further expand the supply of MLCCs for AI servers and ADAS, as well as FCBGAs for AI accelerators. The company will also increase the number of approved high value-added product models for major global tech customers and focus on diversifying its customer portfolio.

Samsung Electro-Mechanics Quarterly Performance 

(Unit: KRW 100 million) 

Business Unit Performance and Outlook

[Component Solution]

The Component Solution business posted Q3 revenue of KRW 1.3812 trillion, up 15% YoY and 8% QoQ, driven by increased MLCC supply across all applications, including industrial, automotive, and IT. The launch of new global smartphone models, broader adoption of ADAS, and growing demand for AI servers and networks led to an expansion in the supply of high value-added products. In Q4, while year-end inventory adjustments may have some impact, demand in the automotive and AI server markets is expected to remain robust. The company plans to strengthen its high value-added lineup of high-capacity and high-voltage MLCCs for automotive applications and target the industrial MLCC market for AI servers.

[Package Solution]

The Package Solution business recorded Q3 revenue of KRW 593.2 billion, up 6% YoY and 5% QoQ. Supply of large-area, high-layer server FCBGAs and memory BGAs to major global tech companies increased. In Q4, demand for FCBGAs for servers and AI accelerators is expected to remain firm, and the company plans to further scale up supply to its existing global tech customers.

[Optical Solution]

The Optical Solution business posted Q3 revenue of KRW 914.6 billion, up 6% YoY. Although revenue declined QoQ due to a drop in demand for flagship smartphones from overseas customers, YoY growth was driven by expanded shipments of high-performance camera modules for strategic customers, all-weather camera modules, and hybrid lens products for automotive applications. In Q4, the company plans to increase supply of customized high-performance IT camera modules tailored to individual customers. With the advancement of autonomous driving technologies, supply of high-reliability automotive camera modules—including all-weather and in-cabin cameras—will be expanded, and next-generation solutions integrating IT technologies will be proposed for new application areas such as humanoids.

Samsung Electro-Mechanics Revenue by Business Unit

(Unit: KRW 100 million)