- ▶ Q1 Revenue of KRW 3.2091 trillion, Operating Profit of KRW 280.6 billion… Quarterly revenue surpasses KRW 3 trillion for the first time in company history
- - Revenue up 17% YoY and 11% QoQ
- - Operating profit up 40% YoY and 17% QoQ
- - Operating profit reflects one-off costs (severance pay expenses) of KRW 71.4 billion
- ▶ Q2 Outlook: Strong demand expected to persist for AI servers, data centers, and automotive sectors; expansion of supply focused on high value-added and high-performance components
Samsung Electro-Mechanics announced on the 30th that it recorded consolidated revenue of KRW 3.2091 trillion and an operating profit of KRW 280.6 billion for the first quarter.
Revenue increased by KRW 470.5 billion (17%) YoY and KRW 307.0 billion (11%) QoQ. Despite reflecting a one-off expense of KRW 71.4 billion, operating profit rose by KRW 80.1 billion (40%) YoY and KRW 41.1 billion (17%) QoQ.
The company attributed the growth to solid demand for high-value industrial and automotive products. Specifically, increased supply of MLCCs for AI servers/ADAS and FCBGAs for AI accelerators/server CPUs drove the YoY improvement in both revenue and operating profit.
In the second quarter, the industrial and automotive component markets are projected to continue growing, fueled by global AI investments and the expansion of autonomous driving.
In particular, as data center infrastructure advances and AI server power consumption rises, demand for high-value MLCCs and FCBGAs for AI servers and data centers is expected to remain robust. In response, Samsung Electro-Mechanics will focus on the timely supply of leading-edge industrial MLCCs and next-generation high-layer, large-area FCBGAs.
Samsung Electro-Mechanics Quarterly Performance
(Unit: KRW 100 million)
Business Unit Performance and Outlook
[Component Solution]
The Component Solution business posted Q1 revenue of KRW 1.4085 trillion, up 16% YoY and 7% QoQ. Samsung Electro-Mechanics explained that revenue increased due to high growth in AI-related sales for servers, power, and networks, combined with the expansion of automotive MLCC supply following the electrification trend.
For Q2, demand in the industrial and automotive markets is expected to continue growing, supported by strong demand for high-end products in AI servers/data centers and the widening application of ADAS.
Samsung Electro-Mechanics plans to expand its supply by developing cutting-edge industrial products, such as ultra-small and ultra-high-capacity MLCCs, while accelerating its entry into high-capacity, high-voltage automotive products and pursuing customer base diversification.
[Package Solution]
The Package Solution business recorded Q1 revenue of KRW 725.0 billion, an increase of 45% YoY and 12% QoQ.
The company explained that revenue rose across all applications due to expanded supply of high value-added package substrates for AI accelerators, server CPUs, and networks for global big tech firms, as well as increased supply of automotive substrates for ADAS and autonomous driving.
In Q2, demand for high value-added FCBGA substrates for AI, servers, and networks is expected to remain strong.
Samsung Electro-Mechanics aims to grow revenue by supplying next-generation high-layer, large-area, and embedded products for AI accelerators and server CPUs in a timely manner, while commencing full-scale supply of new network products for AI data centers to new big tech customers.
[Optical Solution]
The Optical Solution business recorded Q1 revenue of KRW 1.0756 trillion, up 5% YoY and 15% QoQ.
Samsung Electro-Mechanics explained that performance improved due to the full-scale mass production of high-performance camera modules, such as 200-megapixel sensors for IT and slim folded zoom lenses, alongside expanded supply for global EV manufacturers and the bolstered in-cabin camera lineup for domestic OEMs.
In Q2, as the demand for differentiated camera modules for domestic and international flagships continues, the company plans to respond by mass-producing next-generation high-resolution folded zooms and other high-performance modules in a timely manner.
For the automotive sector, the company plans to initiate mass production of next-generation models following the transition to new global EV platforms and continue expanding supply to domestic OEMs.
Samsung Electro-Mechanics Revenue by Business Unit
(Unit: KRW 100 million)