Samsung Electro-Mechanics Signs Long-Term Contracts with Over 10 Big Tech Firms... Operating Profit Doubles on 'AI Boom'
Sales Reached KRW 3.4572 Trillion, Operating Profit KRW 440.4 Billion
Increased MLCC Sales and Component Supply Including Substrates
Driven by increased investment in artificial intelligence (AI), demand for data center components has surged, causing Samsung Electro-Mechanics' second-quarter operating profit to more than double compared to the previous year. Samsung Electro-Mechanics has secured an early lead in the AI components market by signing long-term supply contracts for multilayer ceramic capacitors (MLCCs) with approximately 10 clients, including global hyperscalers and semiconductor companies.
On July 30, Samsung Electro-Mechanics announced in a regulatory filing that its consolidated sales for the second quarter of this year reached KRW 3.4572 trillion, with operating profit of KRW 440.4 billion.
Sales increased by KRW 672.6 billion (24%) year-on-year and KRW 248.1 billion (8%) quarter-on-quarter, while operating profit grew by KRW 227.4 billion (107%) compared to the same period last year and by KRW 159.8 billion (57%) compared to the previous quarter.
Samsung Electro-Mechanics explained that its improved results were driven by expanded sales of MLCCs for data center and automotive electronics, including use in AI servers and networks, as well as increased supply of high value-added semiconductor substrates (FCBGA) to major global big-tech customers, and growing supply of automotive components related to ADAS (Advanced Driver Assistance Systems) and autonomous driving.
In the third quarter, strong demand for AI, data center, and automotive components is expected to continue, driven by ongoing AI infrastructure investment, improved AI semiconductor performance, and wider adoption of autonomous driving technologies. Samsung Electro-Mechanics plans to increase sales by ramping up mass production of high-performance substrates for new AI accelerators and server CPUs, and by expanding its supply of high-performance automotive camera modules.
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Samsung Electro-Mechanics stated that it is actively responding to additional requests for long-term supply contracts from major customers.
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