On the 30th, SamsungElectroMechanics announced that its consolidated operating profit for the second quarter of this year was 440.4 billion won, a 106.7% increase compared to the same period last year. It also rose 57.0% compared to the previous quarter. Revenue totaled 3.4572 trillion won, up 24.2% year-over-year and 7.7% quarter-over-quarter. Net income was 328.3 billion won, up 139.2% year-over-year and 29.9% quarter-over-quarter.
The strong performance was driven by demand for AI data centers and automotive components. Revenue in the Components division reached 1.6494 trillion won, up 29% year-over-year and 17% quarter-over-quarter, accounting for 48% of total revenue. The improvement in performance was driven by increased sales of MLCCs for AI servers, networks, and power applications, as well as expanded supply of automotive MLCCs due to the advancement of autonomous driving and the growth of the eco-friendly vehicle (xEV) market.
The Package Solutions and Optical Solutions segments accounted for 22% and 30% of total revenue, respectively. The Package Solutions segment grew 37% year-over-year, driven by expanded supply of flip-chip ball grid array (FC-BGA) products for AI accelerators and server central processing units (CPUs). The Optical Solutions division saw a 10% increase year-over-year but a 4% decrease quarter-over-quarter due to the impact of the seasonal off-peak period.
In a conference call following the earnings announcement, SamsungElectroMechanics predicted that the growth trend in the MLCC market for AI servers would continue for the time being. The company explained, “Demand for cutting-edge, high-end MLCCs continues to rise due to hyperscalers’ ongoing investments in AI data centers and improvements in graphics processing unit (GPU) computational performance,” adding, “We have signed long-term supply contracts with about 10 customers, including top-tier hyperscalers and major semiconductor companies, and are actively responding to requests for additional contracts.”
The company also projected that its FC-BGA business will continue to benefit from the trend toward higher-performance AI semiconductors. SamsungElectroMechanics assessed that, as the AI paradigm shifts from training to inference, “demand for high-end printed circuit boards is increasing, and since only a handful of companies with mass production capacity and technical expertise can meet this demand, the shortage of high-value-added printed circuit boards is becoming even more severe.” Accordingly, the company announced that it is currently in discussions with major customers regarding strategic long-term supply agreements, including investment support, and plans to expand its production capacity based on these agreements.
The company is also accelerating its efforts in the glass substrate business, a next-generation substrate solution. SamsungElectroMechanics recently signed an agreement with a subsidiary of Japan’s Sumitomo Chemical to establish a joint venture for the production of GlassCore, a key material for glass substrates, and plans to finalize the establishment of the joint venture within this year. The company stated that it is currently developing large-area, high-layer-count glass substrates with major global tech companies, and that some clients have already entered the technical approval and sample evaluation stages. The company plans to begin full-scale mass production in 2028 following the construction of production facilities and the stabilization of manufacturing processes.
SamsungElectroMechanics forecast that the tight supply-demand balance for MLCCs and FC-BGAs will continue in the third quarter due to expanded investment in AI data centers and growth in the autonomous driving market. The company emphasized, “We expect record-breaking performance in the third quarter,” adding that it will sustain its growth momentum by ramping up mass production not only of MLCCs and FC-BGAs but also of automotive camera modules and new products for humanoid robots.
