Samsung Electro-Mechanics Q1 Operating Profit 410.5 Billion KRW... Up 15.1% YoY

Sales Reach 2.6168 Trillion Won

[Asia Economy Reporter Jin-ho Kim] Samsung Electro-Mechanics announced on the 27th that it recorded sales of 2.6168 trillion KRW and an operating profit of 410.5 billion KRW on a consolidated basis for the first quarter.

Sales increased by 325.4 billion KRW (14%) compared to the same period last year and by 186.9 billion KRW (8%) compared to the previous quarter, while operating profit rose by 53.8 billion KRW (15%) year-on-year and by 94.3 billion KRW (30%) quarter-on-quarter.

Samsung Electro-Mechanics explained that its performance improved due to increased sales of high-value-added MLCCs for industrial and automotive applications, high-end APs, ultra-thin CPUs, and expanded supply of high-spec camera modules for flagship products.

The components division posted first-quarter sales of 1.2293 trillion KRW, up 13% year-on-year and 5% quarter-on-quarter. Despite inventory adjustments, sales grew by expanding the supply of high-value-added products such as high-performance industrial and automotive products and small, ultra-high-capacity MLCCs for IT applications.

For the second quarter, demand weakness is expected mainly for general-purpose products, but demand in high-end markets such as 5G, servers, and electric vehicles is expected to remain solid. Samsung Electro-Mechanics plans to actively target the industrial and automotive markets by expanding its lineup of high-reliability MLCCs for high temperature and high pressure environments and to flexibly respond to demand for high-value-added IT products.

The optical communication solutions division recorded sales of 867.9 billion KRW, growing 12% quarter-on-quarter and 3% year-on-year, driven by expanded supply of high-spec camera modules such as folded zoom modules for strategic customers and high-performance automotive camera modules.

Although camera module demand is expected to decline in the second quarter due to seasonal off-season effects, the automotive camera module market is expected to continue growing as ADAS and autonomous driving technologies advance. Accordingly, Samsung Electro-Mechanics plans to expand supply of automotive camera modules targeting major global customers.

The package solutions division posted first-quarter sales of 519.6 billion KRW, up 44% year-on-year and 8% quarter-on-quarter, as supply of high-spec AP, high-value-added SSD memory BGA, and ultra-thin CPU FCBGA continued to expand.

With the semiconductor package substrate market expected to remain tight in supply and demand, Samsung Electro-Mechanics plans to expand supply of high-value-added package substrates for high-end APs and ultra-thin CPUs. In particular, as server substrates become multi-layered and larger in size with higher technical difficulty compared to existing products, and suppliers capable of providing them are limited, Samsung Electro-Mechanics announced that it is preparing for the domestic first mass production of high-value-added server package substrates in the second half of the year.

This content was produced with the assistance of AI translation services.