Samsung Electro-Mechanics Q2 Operating Profit 360.1 Billion KRW... Up 0.6% YoY (Comprehensive)

[Asia Economy Reporter Hyunseok Yoo] Samsung Electro-Mechanics announced on the 27th that it recorded consolidated sales of 2.4556 trillion KRW and operating profit of 360.1 billion KRW in the second quarter. This represents increases of 2% and 1%, respectively, compared to the same period last year. Compared to the previous quarter, sales increased by 6%, but operating profit decreased by 12%.

In the second quarter, performance declined compared to the previous quarter due to a slowdown in demand in the IT market, including smartphones. However, sales grew year-on-year due to increased sales of industrial and automotive MLCCs and semiconductor package substrates for high-spec CPUs.

For the third quarter, it is expected that demand will increase with the launch of flagship smartphone new products and high-value-added products such as servers and automotive components.

Samsung Electro-Mechanics plans to expand the supply of high-end products such as small and high-capacity MLCCs, high-resolution and OIS (Optical Image Stabilization) camera modules, and semiconductor package substrates. The company aims to establish a mid- to long-term growth foundation through mass production of server FCBGA in the second half of the year.

Sales in the components division for the second quarter were 1.1401 trillion KRW, down 5% year-on-year due to a slowdown in IT set demand. However, sales increased in industrial and automotive products due to diversification of customers and expanded demand.

In the third quarter, demand in high-value-added markets such as 5G, servers, and automotive is expected to remain solid. Samsung Electro-Mechanics plans to expand supply focusing on high-value-added products such as small and ultra-high-capacity IT products and server and automotive MLCCs.

Sales in the optical communication solutions division recorded 779.1 billion KRW, down 4% year-on-year due to decreased demand in the smartphone market. In the third quarter, demand is expected to recover compared to the previous quarter with the launch of flagship models by major smartphone manufacturers. Additionally, the automotive camera module market is expected to continue growing due to the advancement of ADAS and autonomous driving technologies. Samsung Electro-Mechanics plans to expand its entry into the foldable phone slim camera module and high-end mass-market segments, and secure various customers for automotive camera modules.

Sales in the package solutions division for the second quarter increased by 3% year-on-year to 536.4 billion KRW due to expanded supply of high-spec PC CPU and automotive FCBGA. Demand for high-end semiconductor package substrates for servers, networks, and automotive is expected to continue increasing. Samsung Electro-Mechanics will expand supply focusing on complex products such as high-layer count and large-area substrates. In particular, the company plans to establish a mid- to long-term growth foundation through the first domestic mass production of server FCBGA in the second half of the year.

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