- ▶ 2024 revenue of KRW 10.2941 trillion, operating profit of KRW 735 billion
- - Revenue increased by 16% and operating profit by 11% compared to the same period last year
- - Samsung Electro-Mechanics surpassed KRW10 trillion in revenue for the first time since its founding
- ▶ Q4 revenue of KRW 2.4923 trillion, operating profit of KRW 115 billion
- - Revenue increased by 8% and operating profit by 1% compared to the same period last year
- - Performance improved compared to the same period last year due to increased supply of high-value-added products such as AI, servers, and automotive components
- ▶ Outlook for 2025: Growth expected in AI, server, and automotive markets; plans to expand supply focusing on high-value-added and high-performance components
Samsung Electro-Mechanics announced on January 24th that it recorded consolidated sales of KRW 2.4923 trillion and an operating profit of KRW 115 billion in the fourth quarter of last year. For the full year 2024, the company reported sales of KRW 10.2941 trillion and an operating profit of KRW 735 billion. These figures represent a 16% increase in sales and an 11% increase in operating profit compared to the previous year, marking the first time Samsung Electro-Mechanics has surpassed KRW 10 trillion in sales since its founding.
* 2023 results: Sales of KRW 8.8924 trillion, Operating profit of KRW 660.5 billion
In Q4 of 2024, sales increased by KRW 192.4 billion (8%) and operating profit by KRW 700 million (1%) compared to the same period last year. Samsung Electro-Mechanics explained that the increase in sales and operating profit from the previous year was due to expanded supply of automotive MLCCs and server FCBGAs, driven by increased demand for high-value-added products such as automotive and server components.
Especially in 2024, automotive MLCC sales achieved double-digit growth compared to 2023 by expanding the entire product lineup, including high-temperature and high-pressure products, and by entering new customer relationships. The Package business unit also saw an increase in annual revenue compared to 2023, driven by the full-scale operation of the Vietnam production line and the expansion of high-value-added product supply, such as server and ARM CPU package substrates.
For this year, the strong demand for AI is expected to continue with the high growth trend of AI servers and the automotive market is also projected to grow further due to the expansion of automotive electronics. As a result, it is expected that the operating profit for Q1 of 2025 will achieve double-digit or higher growth rate compared to both the previous quarter and the same period last year. Samsung Electro-Mechanics plans to strengthen its lineup of high-value-added products such as MLCCs and package substrates for AI servers, as well as MLCCs and camera modules for automotive applications and continue to diversify its client base and expand its supply.
Quarterly Performance of Samsung Electro-Mechanics
(Unit: KRW 100 million)
Business Performance and Outlook by Business Unit
The Component Unit’s Q4 sales increased by 11% compared to the same period last year to KRW 1.0818 trillion. Samsung Electro-Mechanics explained that while sales increased compared to the same period last year due to increased supply of automotive MLCCs, driven by growing demand for EVs/hybrids and the expanded adoption of ADAS functionality, sales decreased compared to the previous quarter. This decrease was attributed to seasonal factors, including year-end inventory adjustments by customers, which led to reduced supply of IT and industrial products.
The AI server market is expected to continue expanding this year. Additionally, as big tech companies and automakers involved in autonomous driving extend electrification features to regular vehicles, demand for AI server and automotive MLCCs is anticipated to rise. Samsung Electro-Mechanics plans to continuously increase sales in the AI server and automotive sectors by promptly responding to market demand through expanding its lineup of high-temperature and high-capacity MLCCs for AI servers and high-temperature, high-pressure products for EV powertrains, and by expanding its automotive MLCC production capacity.
The Package Solution Unit’s Q4 sales recorded KRW 549.3 billion, a 24% increase from the same period last year. Samsung Electro-Mechanics reported that while performance improved compared to the previous year due to expanded supply of FCBGAs for servers and networks to global customers, sales decreased compared to the previous quarter due to year-end smartphone inventory adjustments.
As IT set demand is expected to improve and high growth in AI/server-oriented package substrates is projected to continue in 2025, Samsung Electro-Mechanics plans to expand the supply of high-value package substrates for ARM processors, servers, and networks. In particular, the company’s strategy is to begin full-scale mass production of FCBGAs for AI accelerators, where demand is expected to increase, and to diversify its customer base.
The Optical Solution Unit recorded sales of KRW 861.2 billion in Q4, a 2% decrease from the same period last year. Samsung Electro-Mechanics explained that sales decreased slightly due to year-end inventory adjustments before the launch of new models by major automotive customers.
In response to the ongoing demand for high-performance cameras for smartphone differentiation, Samsung Electro-Mechanics plans to continue growing its business by addressing the market in a timely manner with high-specification IT camera modules featuring high-resolution slim modules and enhanced zoom capabilities, and by expanding the supply of high-reliability automotive camera modules, including all-weather camera modules and in-cabin (indoor-use) cameras.
Earnings by each Business Unit of Samsung Electro-Mechanics
(Unit: KRW 100 million)
