- ▶Achieved revenue of KRW 2.3062 trillion and operating income of KRW 110.4 billion
- - Revenue increased by 17% YoY, operating income increased by 9% YoY, revenue decreased by 2% QoQ, and operating income decreased by 40% QoQ
- - Improved performance YoY due to the release of flagship smartphones, etc.
- ▶Expected recovery of the IT market and growth of the automotive and industrial markets in 2024, driving expansion of supply with a focus on high value-added and high-performance components
On January 31, Samsung Electro-Mechanics announced that it posted revenue of KRW 2.3062 trillion and operating income of KRW 110.4 billion on a consolidated basis in the fourth quarter of 2023.
Samsung Electro-Mechanics gained revenue increase of KRW 337.8 billion (17%) YoY and operating income increase of KRW 9.2 billion (9%) YoY. Meanwhile, its revenue and operating income had decreased KRW 54.7 billion (2%) and KRW 73.6 billion (40%) QoQ, respectively.
Samsung Electro-Mechanics explained that although its revenue and operating income increased YoY, following its supply expansion in MLCC for smartphones and high-functional camera modules such as folded zoom thanks to the launching of new smartphone products, performance decreased QoQ due to the seasonal off-season such as the year-end inventory adjustment.
As for the new year, demand for major products such as smartphones and PCs is expected to improve and the automotive hybrid and internal combustion engine vehicles will expand.
As such, Samsung Electro-Mechanics has established plans to expand its supply by reinforcing high value-added MLCC for IT and package substrate competitiveness, and increase the supply of products related to growth fields such as automotives, server and AI, etc.
Quarterly Performances of Samsung Electro-Mechanics
(Unit: KRW 100 million)
Performances and Forecasts for the Respective Business Units
The Component Unit recorded Q4 revenue of KRW 975.1 billion, up 17% YoY. According to the explanation of Samsung Electro-Mechanics, although the revenue of MLCC for smartphones including small-sized and high-capacity products has improved thanks to the global launching of new smartphone products, it faced revenue decrease QoQ, following product supply reduction triggered by year-end inventory adjustment. This year, the market is expected to grow as demand for IT devices such as smartphones and PCs and industrial products such as servers recovers. Samsung Electro-Mechanics has a plan to continue to increase sales in the automotive field through the expansion of automotive MLCC production capacity and diversification of production bases.
The Optics & Communication Solution Unit recorded Q4 revenue of KRW 888.4 billion, up 36% YoY. In this regard, Samsung Electro-Mechanics explained that it has enlarged the supply of high-definition folded zoom with new structure applied to domestic and international clients and high-pixel automotive camera modules, etc. Samsung Electro-Mechanics has a plan to grow its business by expanding the supply of differentiated products such as high-functional camera modules for IT and high-reliability automotive camera modules, etc.
The Package Solution Unit recorded Q4 revenue of KRW 442.7 billion, down 8% YoY. Also, Samsung Electro-Mechanics reported that despite the increase in supply of BGA for AP and ARM processors, it faced revenue decrease YoY due to demand reduction triggered by year-end inventory adjustment. Samsung Electro-Mechanics has a plan to increase the supply of memory and package substrates for ARM processors and to expand the sales of high value-added semiconductor substrates by securing next-generation advanced technologies such as the implementation of microcircuits for server and automotive products, with the IT set industry expected to recover.
Earnings by each Business Unit of Samsung Electro-Mechanics
(Unit: KRW 100 million)
