Samsung Electro-Mechanics more than doubled its operating profit in the second quarter of this year alongside double-digit revenue growth, buoyed by increased investment in artificial intelligence (AI) data centers. Simultaneous expansion in sales of AI server multilayer ceramic capacitors (MLCC), high-value flip-chip ball grid array (FC-BGA) semiconductor substrates, and automotive components lifted results.
Samsung Electro-Mechanics said on the 30th that second-quarter consolidation revenue was 3.4572 trillion won and operating profit was 440.4 billion won. Revenue rose 24.2% from a year earlier, and operating profit increased 106.7%. Compared with the prior quarter, revenue climbed 7.7% and operating profit rose 57.0%.
Net profit was 328.3 billion won, up 139.2% from a year earlier, and profit attributable to owners of the parent was 315.7 billion won, up 143.4%.
Samsung Electro-Mechanics said performance improved on the back of expanded sales of data center MLCCs for AI servers and networks, increased FC-BGA supply to global big tech customers, and greater shipments of automotive camera modules for advanced driver-assistance systems (ADAS) and autonomous driving.
In particular, Samsung Electro-Mechanics said it signed long-term supply agreements (LTA) for MLCCs with more than 10 customers, including top-tier hyperscalers and major semiconductor companies. The company said it is also actively responding to additional requests for long-term supply agreements. As AI infrastructure expands and stable supply of high-performance MLCCs becomes more important, major customers appear to be increasing long-term contracts.
By business unit, the components business recorded revenue of 1.6494 trillion won, driven by increased demand for data center MLCCs for AI servers, networks, and power, as well as higher MLCC sales for electric vehicles (xEV) and autonomous driving vehicles. That was up 29% from a year earlier and 17% from the previous quarter.
Samsung Electro-Mechanics projected that in the third quarter, demand for AI, data center, and automotive components will continue as AI infrastructure investment expands, AI Semiconductor performance advances, and autonomous driving technology spreads. The company plans to ramp up mass production of high-performance substrates for new AI accelerators and server central processing units (CPUs), and to expand supply of high-performance automotive camera modules to sustain growth.