[Edaily Cho Yong Seok Reporter Choi Oh-hyun] SamsungElectroMechanics posted record-high third-quarter revenue and operating profit, driven by growing demand for components used in artificial intelligence (AI) data centers. High-value-added products, such as multilayer ceramic capacitors (MLCCs) and flip-chip ball grid array (FC-BGA) semiconductor packaging substrates, led the growth. The company forecasts that strong demand for high-specification products for AI data centers will continue into the fourth quarter.

On the 28th, SamsungElectroMechanics announced that it recorded consolidated revenue of 3.7633 trillion won and operating profit of 691 billion won for the third quarter of this year. Revenue rose 30% year-over-year, while operating profit increased by 165%. Compared to the previous quarter (Q2), revenue rose 9% and operating profit increased 57%. The operating profit margin stood at 18.4%, up 9.4 percentage points (p) from the same period last year (9.0%).

SamsungElectroMechanics explained that revenue across all application areas in its Components Division expanded, driven primarily by AI-related products. Revenue growth from FC-BGA products for AI data centers and automotive applications, as well as the expanded supply of camera modules for next-generation global electric vehicle platforms, also contributed to the improved performance.

By business division, the Components Division, which produces devices such as MLCCs, recorded revenue of 1.883 trillion won. The Package Solutions Division, which produces semiconductor package substrates, posted revenue of 939 billion won. The Optical Solutions Division, responsible for camera modules, reported revenue of 941.3 billion won.

Revenue for the Components Business Division increased by 36% year-over-year. It also rose by 14% compared to the previous quarter. The company explained that revenue grew across all application areas, driven primarily by products for AI data centers, such as servers, networks, and power supplies. MLCCs, the division’s flagship product, are components that store electricity in electronic circuits and supply it as needed, helping semiconductors and other devices operate stably.

Revenue for the Package Solutions Division rose 58% year-over-year and 22% quarter-over-quarter. Growth was driven by the expanded supply of high-value-added products for data centers, including server central processing units (CPUs), AI accelerators, and networking components. Supplies of high-performance circuit boards for Advanced Driver Assistance Systems (ADAS) and autonomous driving also increased. FC-BGA is a high-density package substrate that connects semiconductor chips to motherboards and is used in high-performance products such as AI servers.

Revenue for the Optical Solutions Business Division rose 3% year-over-year. However, it decreased by 9% compared to the previous quarter. The start of mass production of new 200-megapixel folded-zoom cameras and expanded supply for foldable devices supported the year-over-year improvement in performance. Supply of camera modules for next-generation global electric vehicle platforms also expanded.

SamsungElectroMechanics forecast that strong demand for high-specification products for AI data centers will continue in the fourth quarter. The company also expects steady demand for automotive components to continue, driven by advancements in autonomous driving technology and other factors.

As graphics processing units (GPUs) for AI servers become more powerful, the demand for higher-capacity and ultra-compact MLCCs is growing. The company explained that the capacitance required per GPU and application-specific integrated circuit (ASIC) is doubling every year. Demand from AI data center customers for expanded supply of package substrates is expected to continue in the fourth quarter. In the fourth quarter, the company plans to begin mass production of high-resolution, ultra-thin camera modules to be installed in next-generation premium smartphones by major customers.

SamsungElectroMechanics stated, “We are continuing to secure long-term MLCC supply contracts primarily with major Big Tech clients, and we plan to capture market share through the early development of cutting-edge products.” The company added, “We plan to expand sales by promptly responding to requests from AI data center clients for increased supply of package substrates and by supplying camera modules for next-generation platforms to global EV clients.”