- ▶ Q3 Sales: KRW 3,763.3 billion, Operating Profit: KRW 691.0 billion … Record-high quarterly sales and operating profit
- - Sales up 30%, operating profit up 165% year-on-year
- - Sales up 9%, operating profit up 57% quarter-on-quarter
- ▶ Strong demand for AI data center components expected to continue in Q4
- - MLCC capacitance required per AI server GPU doubles every year… Responding to AI demand through long-term supply agreements
- - Timely supply of new high value-added FCBGA products for server CPUs and AI accelerators
On the 28th, Samsung Electro-Mechanics announced that in the third quarter, it recorded consolidated sales of KRW 3,763.3 billion and operating profit of KRW 691.0 billion.
Sales increased by KRW 874.3 billion (30%) year-on-year and by KRW 306.1 billion (9%) quarter-on-quarter, while operating profit increased by KRW 430.7 billion (165%) year-on-year and by KRW 250.6 billion (57%) quarter-on-quarter.
Samsung Electro-Mechanics explained that its results improved due to increased sales across all applications in the Component Unit, centered on AI products, growth in FCBGA sales for AI data centers and automotive, and expanded supply of camera modules for next-generation platforms of global EV customers.
In the fourth quarter, strong demand for high-end products for AI data centers is expected to continue, and demand for automotive components is also projected to remain steady due to advancements in autonomous driving technology and other factors.
Samsung Electro-Mechanics continues to respond to long-term MLCC supply agreements, centered on major big tech customers, and plans to get ahead in the market by developing cutting-edge products early. In addition, the company plans to respond promptly to requests for expanded supply of package substrates from AI data center customers and expand sales by supplying camera modules for next-generation platforms to global EV customers.
[Samsung Electro-Mechanics Quarterly Results]
(Unit: KRW 100 million)
□ Results and Outlook by Business Division
[Component Solution]
The Component Unit recorded Q3 sales of KRW 1,883.0 billion, up 36% year-on-year and 14% quarter-on-quarter. Sales increased across all applications, led by AI data center applications such as servers, networks, and power.
With the advancement of GPUs for AI servers, there is a growing demand for higher-capacitance and smaller MLCCs. Recently, the industry has come to refer to the phenomenon of MLCC capacitance required per GPU/ASIC doubling every year as the "AI MLCC Law," and this serves as a structural growth driver, accelerating MLCC demand in line with AI semiconductor performance improvements.
Accordingly, in Q4, the company plans to get ahead in the market by expanding supply of compact and ultra-high-capacitance MLCCs for AI and developing cutting-edge products early, while continuing to respond to long-term supply agreements, centered on major big tech customers. In addition, the company will continue to expand into high value-added products such as ultra-high-capacitance and high-voltage MLCCs for xEV/ADAS applications.
[Package Solution]
The Package Solution Unit recorded Q3 sales of KRW 939.0 billion, up 58% year-on-year and 22% quarter-on-quarter. Sales growth was driven by expanded supply of high value-added products for data centers such as server CPUs, AI accelerators, and networks, as well as increased supply of high-performance substrates for ADAS and autonomous driving.
In Q4, demand from AI data center customers for expanded supply is expected to continue. Samsung Electro-Mechanics plans to respond to customer demand by supplying new high value-added FCBGA products for server CPUs and AI accelerators in a timely manner and by promptly expanding production capacity at each site.
[Optical Solution]
The Optical Solution Unit recorded Q3 sales of KRW 941.3 billion, down 9% quarter-on-quarter but up 3% year-on-year. The results improved year-on-year due to the start of mass production of new 200MP folded zoom modules, expanded supply for foldable phones, and expanded automotive supply for next-generation platforms of global EV customers.
In Q4, the company plans to mass-produce high-resolution/slim cameras for next flagship models for strategic customers. In addition, with the expansion of demand due to advancements in autonomous driving technology and commercialization of humanoids, the company plans to expand supply of products for next-generation platforms for automotive and global EV customers.
[Samsung Electro-Mechanics Sales by Business Division]
(Unit: KRW 100 million)
