Seoul: Samsung Electro-Mechanics Co., an electronic components affiliate of Samsung Electronics Co., announced on Thursday that its net income for the second quarter experienced a remarkable increase of nearly 140 percent compared to the previous year. This surge was attributed to robust demand for products utilized in artificial intelligence (AI) infrastructure.

According to Yonhap News Agency, the company's net profit for the April-June period reached 328.3 billion won (US$227.2 million), marking a 139.2 percent rise from the same period last year, as stated in a regulatory filing. In addition, Samsung Electro-Mechanics reported an operating profit of 440.4 billion won for the quarter, a substantial increase from the 213 billion won reported a year earlier. Sales also saw a significant upturn, climbing 24.2 percent on-year to 3.46 trillion won, setting a new quarterly record.

The reported earnings aligned with market expectations, with analysts' average net profit estimate pegged at 326.5 billion won, based on a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency. Samsung Electro-Mechanics attributed the improved earnings to increased sales of multilayer ceramic capacitors (MLCCs) for data center applications, including AI servers and network equipment, as well as automotive applications.

The company also noted a rise in shipments of high-value semiconductor substrates to major global technology companies. Furthermore, there was an uptick in demand for automotive components, particularly those used in advanced driver assistance systems and autonomous driving technologies, contributing to the positive financial performance.