- ▶ Achieved revenue of KRW 2.5801 trillion, and operating income of KRW 208.1 billion
- - Revenue increased by 16% YoY, operating income increased by 2% YoY
- - Expanded supply of high value-added products such as automotive MLCCs, folded zoom cameras, and server substrates, etc.
- - Year-over-year revenue growth across all business units
- ▶ Plan to expand the supply of high-spec parts by new product launches from major trading partners in the second half
- - Expected rise in demand for IT components, including AI PCs and new smartphones
- - Concentrating on the automotive parts market and expanding the sales of industrial products such as servers
On July 31, Samsung Electro-Mechanics announced that it posted revenue of KRW 2.5801 trillion and operating income of KRW 208.1 billion on a consolidated basis in the second quarter of 2024.
Samsung Electro-Mechanics gained revenue increase of KRW 359.6 billion (16%) YoY and operating income of KRW 3.1 billion (2%) YoY. Meanwhile, its revenue decreased KRW 44.2 billion (2%) QoQ but operating income increased KRW 27.8 billion (15%) QoQ.
Samsung Electro-Mechanics explained that although revenue decreased QoQ due to a drop in supply of some products due to the seasonal off-season, revenue and operating profit increased YoY due to a rise in sales of high-performance semiconductor package substrates such as industrial and automotive MLCCs and server substrates, which are high value-added products.
As for the third quarter, Samsung Electro-Mechanics expects to see the arrival of new flagship smartphones from both domestic and international trading partners. Additionally, the market for AI-related products is anticipated to expand, increasing the demand for high-performance components. Samsung Electro-Mechanics plans to expand the supply of high value-added products such as small-sized, high-capacity MLCCs and high-spec semiconductor package substrates such as FCBGA for servers. In addition, by discovering new customers and diversifying production locations, Samsung Electro-Mechanics will supply the parts that the market needs in a timely manner and continue to lead the automotive parts industry.
Quarterly Performance of Samsung Electro-Mechanics
(Unit: KRW 100 million)
Performances and Forecasts for the Respective Business Units
The Component Unit recorded Q2 revenue of KRW 1 trillion 160.3 billion, up 15% YoY and up 13% QoQ. All application areas, including IT/industry such as PC, TV, home appliances, server, etc. and automotive, have seen a rise in product supply. In the third quarter, Samsung Electro-Mechanics plans to increase sales of industrial products, such as small-sized and high-capacity, high-value IT MLCCs and high-temperature and high-pressure MLCCs installed in AI servers by launching new smartphones. Samsung Electro-Mechanics plans to prepare for the initial mass production of MLCCs for automotives at its Philippines production corporation and continue to pursue diversification of its customer base as the electrification of internal combustion engines continues and the demand for MLCCs for automotives rises.
The Optics & Communication Solution Unit recorded Q2 revenue of KRW 920.7 billion, up 19% YoY by expanding the supply of high-performance camera modules such as folded zoom for overseas transactions, despite 22% decrease QoQ due to the seasonal off-season. In the third quarter, Samsung Electro-Mechanics plans to expand the supply of high value-added products such as ultra-slim camera modules with the launch of new smartphones by major trading partners and broaden the product lineup through technological differentiation including high-resolution, slim, and ultra-close-up. Further, regarding the automotive camera module, Samsung Electro-Mechanics plans to strengthen the partnership with autonomous driving platform companies and prepare for the mass production of all-season weather proof automotive camera modules within the year.
The Package Solution Unit recorded Q2 revenue of KRW 499.1 billion, up 14% YoY and up 17% QoQ. Samsung Electro-Mechanics increased its revenues by raising sales of high value-added package substrates such as BGA including substrates for ARM processors, substrates for memory, etc. and FCBGA for servers and automotives. In the third quarter, with the anticipated growth in demand for large-area, high-layer substrates, Samsung Electro-Mechanics plans to boost sales of high value-added FCBGAs such as servers and networks, and expand the supply of BGA products, which are in higher demand as a result of the release of AI PCs and flagship smartphones.
Earnings by each Business Unit of Samsung Electro-Mechanics
(Unit: KRW 100 million)
