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Samsung Electro-Mechanics Achieves Record Q3 Profits Amid AI Demand Surge

Seoul:Samsung Electro-Mechanics Co., an affiliate of Samsung Electronics Co., has reported record-breaking revenue and operating profit for the third quarter, largely driven by the burgeoning demand for components used in artificial intelligence (AI) infrastructure.

According to Yonhap News Agency, the company's operating profit for the July-September period soared by 165.5 percent year-on-year to 691 billion won (US$516 million), with revenue climbing 30.3 percent to 3.76 trillion won, marking all-time highs for both metrics. The net profit similarly saw a significant increase of 115.7 percent from the previous year, reaching 485 billion won.

Samsung Electro-Mechanics attributed this financial success to heightened sales of multilayer ceramic capacitors (MLCCs) for AI data centers, encompassing servers and network equipment as well as automotive applications. The company's component business witnessed growth across all sectors, particularly in AI-related products. Sales of flip-chip ball grid array substrates for AI data centers and automotive applications also saw an uptick.

The company additionally reported a rise in shipments of camera modules tailored for next-generation platforms of global electric vehicle (EV) manufacturers. Samsung Electro-Mechanics is keen on fulfilling long-term MLCC supply agreements with prominent global technology firms and is committed to bolstering its market position through the early development of advanced products.

In response to the escalating demand for package substrates used in AI data centers, Samsung Electro-Mechanics plans to expand its sales by supplying camera modules for next-generation EV platforms.

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